BackECONOMY
Union Cabinet raises sugarcane FRP by ₹10 per quintal
The Cabinet Committee on Economic Affairs increased the sugarcane Fair and Remunerative Price (FRP) for the 2026-27 sugar season by ₹10 per quintal, to ₹365 per quintal for a basic recovery rate of 10.25%. A premium/discount mechanism was announced: ₹3.56 per quintal for each 0.1% increase above 10.25%, and the same amount deducted for each 0.1% decrease. The change applies to the sugar season 2026-27 (October-September).
Why It Matters
The decision directly affects sugarcane farmers' remuneration and could influence sugar production costs and prices in the coming season.
Timeline
1 Event
CCEA decision on sugarcane FRP for 2026-27
May 5, 2026
The Cabinet Committee on Economic Affairs met on May 5, 2026 and decided to raise the FRP of sugarcane for the 2026-27 sugar season (October-September) by ₹10 per quintal from the last crop year, setting the new price at ₹365 per quintal for a basic sugar recovery rate of 10.25%. The scheme includes a premium of ₹3.56 per quintal for each 0.1% increase in recovery over 10.25% and a discount of ₹3.56 per quintal for each 0.1% decrease in recovery.