Government Boosts Sugarcane Price to Benefit Farmers in 2026-27

The government has raised the minimum price sugar mills must pay to sugarcane farmers by Rs 10, setting it at Rs 365 per quintal for the 2026-27 season. This decision is expected to benefit around one crore sugarcane farmers and support the continued operation of sugar factories.

The Indian government has announced a rise in the minimum price that sugar mills are required to pay sugarcane growers. Set to take effect in the 2026-27 season, this increase of Rs 10 raises the Fair and Remunerative Price (FRP) to Rs 365 per quintal, as approved by the Cabinet Committee on Economic Affairs.

Union Minister Ashwini Vaishnaw stated that the updated FRP, which is 2.81% higher than the previous season, incentivizes sugar mills with higher sugar recovery rates by offering further monetary returns. The initiative protects farmers supplying to mills with lower recovery rates, ensuring that no deductions are made in such circumstances.

This development, supported by the Commission for Agricultural Costs and Prices (CACP) and consultations with state governments, aims to benefit approximately one crore sugarcane farmers. With an anticipated income exceeding Rs 1 lakh crore, this policy shift also looks to sustain sugar factory operations and enhance ethanol production from excess sugarcane.