Is the Centre Increasing Fair Price for Sugarcane to Rs 355 a Quintal?
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Synopsis
In a move to bolster the earnings of sugarcane farmers, the Indian government has raised the fair and remunerative price to Rs 355 per quintal for the upcoming sugar season. This decision, aimed at enhancing farmer welfare, reflects the government's commitment to supporting the agricultural sector.
Key Takeaways
- New fair price for sugarcane set at Rs 355/qtl.
- Increase of 4.41% from the previous season.
- Premiums for recovery rates above 10.25%.
- No deductions for low recovery rates below 9.5%.
- Effective from October 1, 2025.
New Delhi, April 30 (NationPress) The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has officially approved an increase in the fair and remunerative price (FRP) of sugarcane to Rs 355 per quintal for a basic recovery rate of 10.25 per cent for the upcoming sugar season of 2025-26 (October-September), aiming to support the interests of farmers, as detailed in a cabinet communique.
The FRP for the 2025-26 sugar season is 4.41 per cent higher than that of the current season, 2024-25.
Additionally, a premium of Rs 3.46 per quintal will be given for every 0.1 per cent increase in recovery beyond 10.25 per cent, while a reduction of Rs 3.46 per quintal will occur for every 0.1 per cent decrease in recovery.
To safeguard the interests of sugarcane farmers, the government has decided that no deductions will apply for sugar mills with recovery rates below 9.5 per cent. In such cases, farmers will receive Rs 329.05 per quintal for sugarcane in the upcoming season, as clarified in the statement.
The production cost (A2+FL) of sugarcane for 2025-26 is Rs 173/qtl. Thus, the approved FRP of Rs 355/qtl at a recovery rate of 10.25 per cent is significantly higher by 105.2 per cent over the production cost.
This FRP will be effective from October 1, 2025, for sugar mills purchasing sugarcane from farmers.
The sugar industry is a crucial agro-based sector that affects the livelihoods of approximately 5 crore sugarcane farmers and their dependents, as well as around 5 lakh workers directly employed in sugar mills, not to mention those engaged in various related activities, including farm labor and transportation.
The FRP has been set based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after discussions with state governments and other stakeholders.
In the previous sugar season of 2023-24, out of a total cane dues of Rs 1,11,782 crore, approximately Rs 1,11,703 crore was paid to farmers by April 28, representing a clearance rate of 99.92 per cent.
For the current sugar season 2024-25, out of cane dues of Rs 97,270 crore, around Rs 85,094 crore has been paid to farmers as of April 28, which constitutes 87 per cent of the dues settled.
Point of View
I firmly believe this decision reflects the government's ongoing commitment to support the agricultural sector. Raising the fair price of sugarcane is a crucial step towards ensuring the economic stability of millions of farmers. The measure not only aims to improve their income but also recognizes the essential role they play in the economy. As always, we remain dedicated to advocating for farmers' rights and interests.
NationPress
08/06/2025
Frequently Asked Questions
What is the new fair price for sugarcane?
The new fair price for sugarcane has been set at Rs 355 per quintal for the 2025-26 sugar season.
How much higher is the new price compared to the previous season?
The new price is 4.41% higher than the current sugar season price.
What happens to farmers with low recovery rates?
Farmers whose mills have recovery rates below 9.5% will not face any deductions and will receive Rs 329.05 per quintal.
Why is this price increase significant?
This price increase is significant as it aims to enhance the earnings of approximately 5 crore sugarcane farmers and their families.
When will the new price take effect?
The new fair price will take effect from October 1, 2025.
