Government Hikes Sugarcane Support Price, Boosting Farmers' Incomes

The Indian government has increased the Fair and Remunerative Price (FRP) for sugarcane by Rs 10 to Rs 365 per quintal for the 2026-27 season. This decision benefits sugarcane farmers, supports farm laborers, ensures the sugar industry's sustainability, and promotes ethanol production from surplus sugarcane.

The Indian government announced on Tuesday a Rs 10 increase in the Fair and Remunerative Price (FRP) for sugarcane, setting the new rate at Rs 365 per quintal for the 2026-27 season beginning in October. Prime Minister Narendra Modi chaired the Union Cabinet meeting where the decision was made.

Information & Broadcasting Minister Ashwini Vaishnaw revealed that the basic recovery rate stands at 10.25 percent, with an additional Rs 3.56 per quintal offered for every 0.1 percent increase above this rate. The minister highlighted that the current FRP equals 200.5 percent of the All India weighted cost of production.

This move is expected to impact nearly 1 crore sugarcane farmers and provide a better livelihood to approximately 5 lakh workers in sugar factories and related activities. Additionally, the decision encourages ethanol production from surplus sugarcane, ensuring economic and environmental benefits.