The Cabinet Committee on Economic Affairs under the chairmanship of Prime Minister Narendra Modi (CCEA) has taken an important decision in the interest of sugarcane farmers on Tuesday. For the Chinese session 2025-26 (October 2025 to September 2026), the proper and beneficial price of sugarcane (Fair and Remunerative Price) has been fixed at ₹ 355 per quintal. This decision has been taken after the recommendations of the Agricultural Costs and Prices Commission (CACP) and consultation with the states and the parties concerned.
This price is based on the original recovery rate of 10.25%. If the recovery is higher than this rate, then every 0.1% additional recovery will provide a premium of ₹ 3.46. At the same time, the price will be cut by equal proportion when recovery is reduced.
However, the government has clarified that no cuts will be made in such a situation by giving relief to farmers selling sugarcane from sugar mills with less than 9.5% recovery. Payment of ₹ 329.05 per quintal has been ensured to these farmers.
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Farmers will get 105.2% higher than production cost
The government said that the estimated production cost of sugarcane for 2025-26 (A2+FL) is ₹ 173 per quintal. In comparison, an FRP of ₹ 355 per quintal is 105.2% higher. This rate is 4.41% higher than the current session 2024-25.
5 crore farmers and 5 lakh workers will benefit
This decision will directly benefit about 5 crore sugarcane farmers and their dependents across the country. Apart from this, 5 lakh workers who are engaged in sugar mills and assistant activities will also benefit.
Notable progress made in sugarcane dues
The government also shared the updated status of sugarcane payment.
- Out of ₹ 1,11,782 crore in 2023-24 session, ₹ 1,11,703 crore (99.92%) has been repaid to farmers.
- Out of ₹ 97,270 crore in 2024-25 session, ₹ 85,094 crore (87%) has been paid so far (till 28 April 2025).
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First Published – April 30, 2025 | 9:03 PM IST
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