16 October 2026, New Delhi: The All India Kisan Sabha (AIKS), an Indian farmers’ organisation, has demanded a legally guaranteed sugarcane price of at least Rs 575 per quintal and called for the restructuring of a government-appointed committee examining sugarcane pricing and the minimum selling price of sugar.
The demands follow protests by sugarcane growers in southern Maharashtra and northern Karnataka. The organisation said sustained demonstrations had compelled the Union Government to establish a committee under former NITI Aayog Member Prof. Ramesh Chand. However, it has questioned the committee’s composition, terms of reference and the absence of a deadline for submitting recommendations.
With the 2026-27 sugarcane crushing season having begun on October 1, the organisation has called for the inclusion of sugarcane growers’ representatives, state governments from cane-producing regions and independent economists in the committee.
The All India Kisan Sabha has criticised the appointment of Prof. Ramesh Chand, citing his previous support for India’s three farm laws and opposition to a legally guaranteed minimum support price (MSP). It argues that the committee, as currently constituted, does not adequately represent sugarcane farmers’ interests.
The organisation has also raised concerns about the committee’s terms of reference, which link sugarcane pricing to the financial viability of sugar mills. According to the farmers’ body, this approach risks giving mill owners disproportionate influence over decisions on cane prices.
It has further questioned the absence of a defined timeline for the committee’s recommendations, calling for a time-bound review of sugarcane pricing and related policy issues.
The organisation has challenged the Commission for Agricultural Costs and Prices’ (CACP) assessment of the Fair and Remunerative Price (FRP) of Rs 365 per quintal for the 2026-27 sugar season. It argues that the existing cost calculations do not adequately reflect the full cost of sugarcane cultivation.
The All India Kisan Sabha has demanded a minimum price of Rs 575 per quintal and proposed changes to the pricing formula to account for revenue generated from sugar, ethanol, electricity and biogas. It has called for farmers to receive 75% of the value generated from these products under an expanded Rangarajan formula.
The organisation has also proposed using a sugar recovery rate of 9%, instead of 10.25%, for calculating the cane price. It argues that production costs and farmer returns should be assessed using updated indices and more representative yield data.
Sugar Minimum Selling Price Increase Sought
The farmers’ organisation has demanded that the minimum selling price of sugar be increased from Rs 31 per kg, where it has remained since 2019, to at least Rs 50 per kg.
It argues that the existing price structure constrains mills’ ability to pay farmers adequately, while large corporate buyers in the beverage and confectionery sectors benefit from the current arrangement.
The organisation has proposed a dual-pricing mechanism under which corporate buyers would pay a higher price, with the additional revenue passed on to sugarcane growers.
Demand for MSP at C2 Plus 50% Across Crops
Beyond sugarcane, the All India Kisan Sabha has called for minimum support prices for all Kharif and Rabi crops to be set at 50% above the C2 cost of production, backed by a legal guarantee of procurement.
The organisation cited cotton, soybean, wheat and gram to highlight what it describes as a gap between announced MSPs and production costs. It has called for field-based production cost estimates from every state, public hearings involving farmers’ organisations and annual publication of cost data.
It argues that transparent and representative cost assessments are necessary to ensure agricultural pricing policies reflect actual cultivation expenses.
Arrears Clearance and 30-Day Reporting Deadline Among Demands
The organisation has also demanded payment of pending FRP arrears with 15% interest, an end to deductions for mechanical harvesting, and farmer-supervised weighbridges and sugar recovery testing.
Its demands include restructuring the committee to incorporate grower representation, publishing a report within 30 days and implementing the recommendations from the current crushing season.
The All India Kisan Sabha said it would seek a meeting with the committee and continue its campaign alongside the Samyukt Kisan Morcha (SKM) and other organisations if its demands were not addressed.
The demands bring sugarcane pricing, production cost calculations and the distribution of revenue from sugar and its by-products into focus as Indian farmers press for higher returns and greater representation in decisions affecting the sector.
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