Centre Hikes Sugarcane FRP by ₹100 per Tonne for 2026-27 Season

Union Cabinet approved ₹100 increase in sugarcane FRP to ₹3,650 per tonne for 2026–27 season, claiming it is over 100% above production cost, benefiting farmers nationwide

New Delhi / Kolhapur | 05 May 2026: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an increase of ₹100 per tonne in the Fair and Remunerative Price (FRP) of sugarcane for the 2026–27 sugar season, fixing it at ₹3,650 per tonne. The decision, announced after the cabinet meeting on Tuesday, is expected to benefit nearly five crore sugarcane farmers across the country as well as workers associated with the sugar industry.

According to the government, the revised FRP is 100.5 per cent higher than the estimated production cost of ₹1,820 per tonne. Officials stated that the new pricing framework is designed to ensure remunerative returns to farmers while maintaining stability in the sugar sector. The FRP will be applicable from October 1, 2026, marking the start of the new crushing season.Under the revised structure, ₹3,650 per tonne will be applicable for a sugar recovery rate of 10.25 per cent. For every 1 per cent increase or decrease in recovery, the price will be adjusted by ₹356 per tonne. In cases where the recovery falls below 9.5 per cent, a minimum price of ₹3,383 per tonne has been fixed to ensure baseline protection for farmers. The government noted that the FRP for the 2025–26 season stood at ₹3,555 per tonne.

The announcement has drawn mixed reactions from stakeholders in the sugar industry. Representatives of cooperative sugar factories have welcomed the move but cautioned that linking FRP to market viability remains crucial for the sector’s sustainability. Industry leaders expressed concern that without alignment between FRP and minimum sugar sale price, financial pressure on mills could increase.

On the other hand, farmers’ representatives have criticised the magnitude of the increase, calling it insufficient in comparison to rising cultivation costs. They argue that input costs have increased significantly in recent years, making the current revision inadequate to meet production expenses. Some farmer leaders demanded a substantially higher hike, stating that sugarcane cultivation economics remain under strain.

The government, however, maintains that the revised FRP ensures fair compensation while balancing industry viability. Alongside the FRP decision, the Cabinet also approved a ₹5,659 crore five-year scheme aimed at boosting cotton production in the country, with a target to significantly increase output by 2031.The twin decisions reflect the Centre’s continued focus on strengthening agricultural productivity while attempting to address pricing and income concerns across key cash crops.

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