The Cabinet Committee on Economic Affairs has approved a Fair and Remunerative Price (FRP) of Rs 365 per quintal for sugarcane for the 2026-27 sugar season at a basic recovery rate of 10.25%.

The revised FRP includes a premium of Rs 3.56 per quintal for every 0.1% increase in sugar recovery above 10.25%, while a similar reduction will apply for lower recovery levels. However, the government clarified that no deduction will be made for farmers supplying to mills with recovery below 9.5%, and such farmers will receive Rs 338.3 per quintal.

The approved FRP is 2.81% higher than the current season’s rate and stands over 100% above the estimated production cost of Rs 182 per quintal.

The government said the move is aimed at safeguarding the interests of around 5 crore sugarcane farmers and workers associated with the sugar industry.