CCEA Hikes Sugarcane FRP to Rs. 365/Quintal for Sugar Season 2026-27
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📌 Summary:
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Cabinet Committee on Economic Affairs (CCEA) approved an increase of Rs. 10/quintal in the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2026-27 (October-September), setting it at Rs. 365 per quintal at the basic recovery rate of 10.25%
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FRP is the minimum price that sugar mills must pay to farmers for sugarcane — legally binding under the Sugarcane (Control) Order, 1966
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The FRP is linked to the recovery rate: Rs. 3.56 premium per quintal for each 0.1% recovery above 10.25%; corresponding reduction for below
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India is the world's 2nd largest sugar producer (after Brazil) and the largest consumer; ~5 crore farmers grow sugarcane on ~55 lakh hectares
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Key states: Uttar Pradesh (largest producer), Maharashtra, Karnataka; sugar season runs October to September
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FRP vs SAP (State Advised Price): Many states (especially UP) announce a higher SAP over and above FRP; mills sometimes delay payment to farmers, causing agrarian distress
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The Rs. 10 hike is in line with cost of production increase due to rising fertiliser and labour costs; Commission for Agricultural Costs and Prices (CACP) recommended this revision
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Ethanol procurement from sugarcane is incentivised at higher rates to divert excess sugar production, reducing mill-farmer payment pressure
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