Cabinet Approves ₹365/qtl FRP for Sugarcane for 2026–27 Season

Why in the News?
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a Fair and Remunerative Price (FRP) of ₹365 per quintal for sugarcane for the 2026–27 sugar season. 

About Fair and Remunerative Price (FRP)

• FRP is the minimum price that sugar mills must pay to farmers for sugarcane.
• Fixed annually by the Central Government based on recommendations of the Commission for Agricultural Costs and Prices.
• Applies across India for procurement during the sugar season (October–September).

Key Features of 2026–27 FRP

• FRP: ₹365 per quintal.
• Base recovery rate: 10.25%.
• Incentive: ₹3.56 per quintal for every 0.1% increase in sugar recovery above 10.25%.
• Disincentive: Equivalent reduction for lower recovery.
• Farmer protection clause:
  • No deduction for recovery below 9.5%.
  • Minimum assured price: ₹338.3 per quintal.

What is Sugar Recovery?

• It refers to the percentage of sugar extracted from sugarcane.
• Higher recovery → higher returns for mills and better price incentives for farmers.

Significance

• Ensures remunerative income for sugarcane farmers.
• Encourages cultivation of high-recovery varieties.
• Balances interests of farmers and sugar industry.

Provides price stability in the sugar sector.

Source: PIB