New Delhi: Both the Central and State governments are taking various measures to boost farmers’ income. Amidst these efforts, farmers have received yet another piece of good news. On Tuesday, the Central Government hiked the Fair and Remunerative Price (FRP) for sugarcane by ₹10 per quintal for the 2026-2027 season, which commences in October.
The Fair and Remunerative Price has now been raised to ₹365 per quintal. This decision regarding the sugarcane FRP was taken during a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. Union Minister for Information and Broadcasting, Ashwini Vaishnaw, announced this information to the media.
He stated that the decision was made to fix the FRP at ₹365 per quintal, based on a basic recovery rate of 10.25 per cent. For every 0.1 per cent increase in recovery above the 10.2 per cent threshold, the FRP will see an increment of ₹3.56 per quintal. This mechanism serves as an incentive for higher recovery rates.
Know When the Sugar Season Runs
Union Minister Ashwini Vaishnaw noted that the FRP stands at 2200 per cent of the production cost. The Minister added that farmers are expected to receive a total payout exceeding ₹1 lakh crore. The government determines the FRP for sugarcane based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
Furthermore, sugar mills must procure sugarcane from farmers at the FRP rate or at a price higher than it. The sugar season typically runs from October to September. This move by the Central Government is being hailed as a significant decision taken in the interest of farmers.
The government has increased FRP Every Year for the Past Decade.
The Union Minister highlighted that, over the last ten years, the FRP for sugarcane has been increased annually. This measure is expected to benefit approximately 10 million (1 crore) sugarcane farmers. Additionally, it will provide support to agricultural labourers engaged in sugarcane cultivation. Moreover, it will ensure the continuous operation of sugar mills and maintain a stable supply of domestic sugar.
He further stated that this initiative would lead to improved livelihoods for 500,000 workers employed in sugar mills and allied activities. Additionally, it will also become possible to produce ethanol from surplus sugarcane.
Government Gives Green Signal to These Projects as Well
For information, in a separate decision, the Cabinet has approved three projects of the Ministry of Railways worth approximately ₹23,437 crore. These projects include the construction of third and fourth railway lines on the Nagda-Mathura, Guntakal-Wadi, and Burhwal-Sitapur sections. According to a government press note issued on the occasion, the enhanced capacity of these railway lines is expected to lead to significant improvements in transportation.










