06 May 2026, New Delhi: The Government of India has approved a Fair and Remunerative Price (FRP) of ₹365 per quintal for sugarcane for the 2026-27 sugar season at a basic recovery rate of 10.25 percent. The announcement was made by Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan following the decision of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.
Under the approved formula, sugar mills will pay a premium of ₹3.56 per quintal for every 0.1 percent increase in recovery above 10.25 percent. In cases where recovery is lower than 10.25 percent, the FRP will be reduced at the same rate.
The government also stated that farmers supplying sugarcane to mills with recovery below 9.5 percent will not face any deduction in FRP and will receive ₹338.30 per quintal.
According to the Ministry of Agriculture and Farmers Welfare, the estimated cost of sugarcane production for the 2026-27 sugar season is ₹182 per quintal. The newly approved FRP of ₹365 per quintal is 2.81 percent higher than the FRP announced for the 2025-26 sugar season.
India’s sugar sector is linked to around 5 crore sugarcane farmers and their families, along with approximately 5 lakh workers employed in sugar mills and related activities.
The ministry also shared data on sugarcane payment clearances. During the 2024-25 sugar season, payments of about ₹1,02,209 crore had been made by April 20, 2026, against total dues of ₹1,02,687 crore. For the ongoing 2025-26 sugar season, payments of approximately ₹99,961 crore had been cleared by April 20, 2026, against total dues of ₹1,12,740 crore.
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