Hike in FRP is 4.41% more than the current sugar season 2024-25
The revised FRP for sugarcane in India will come into effect from October 1, 2025
The Indian government has raised the Fair and Remunerative Price (FRP) for sugarcane to Rs 355 per quintal for the sugar season 2025-26 (October-September), an increase of Rs 15 from the 2024-25 sugar season. The Indian Cabinet Committee on Economic Affairs (CCEA) had on April 30, 2025, approved the FRP of sugarcane for the 2023-24 sugar season.
The FRP for the sugar season 2025-26 is 4.41 % higher than the current sugar season 2024-25, which is Rs 340 per quintal.
The new FRP will be applicable for the purchase of sugarcane from farmers in the sugar season starting October 1, 2025, by the sugar mills.
The FRP is for the basic recovery rate of 10.25% from 100 kg of sugarcane. For every additional 0.1% increase in recovery, there will be a premium of Rs 3.46 per quintal over the FRP, and a deduction of Rs 3.46 per quintal for 0.1% decline in recovery.
To protect the interest of farmers, the CCEA also decided that there will be no deduction in the case of sugar mills where recovery is below 9.5%. Such farmers will get Rs 329.05 per quintal for sugarcane in the ensuing sugar season 2024-25.
The FRP is determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) after consultation with the state governments and other stakeholders.
While the Indian government announces the FRP to be paid by the sugar mills to the farmers, several states of the country have their own mechanism to determine the rates for sugarcane to be paid to the growers. It is called state advised price (SAP).
Currently, Uttar Pradesh, Uttarakhand, Haryana, and Punjab have their own SAP for sugarcane, which is paid by the sugar mills in these states to the farmers. The SAP is higher than the FRP.