FRP Hike for Sugarcane to ₹355 per Quintal for 2025–26 Season: Cabinet Approval

Introduction: Government’s Support to Sugarcane Farmers

On April 30, 2025, the Union Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved a significant increase in the Fair and Remunerative Price (FRP) of sugarcane for the 2025–26 season. The FRP has been raised by ₹15 per quintal, setting it at ₹355 per quintal, effective from October 2025. This decision aims to benefit approximately 5 crore sugarcane farmers across India.

Details of the FRP Hike

The FRP is determined based on a basic recovery rate of 10.25%. For every 0.1% increase or decrease in recovery, the FRP is adjusted by ₹3.32 per quintal. This formula ensures that farmers are compensated fairly for the quality of sugarcane produced. The new FRP of ₹355 per quintal represents a 4.41% increase over the previous season’s FRP of ₹340 per quintal.

Impact on Farmers and the Agricultural Sector

The FRP hike is expected to provide substantial economic support to sugarcane farmers, enhancing their income and encouraging increased production. This move aligns with the government’s broader objective of doubling farmers’ income by 2022, as outlined in the “Modi ki Guarantee” initiative. The increased FRP also reflects the government’s commitment to ensuring fair remuneration for farmers and addressing their concerns.

Government’s Commitment to Farmers

In addition to the FRP hike, the government has decided that there will be no deductions in cases where sugar mills’ recovery rate is below 9.5%. In such instances, farmers will receive ₹329.05 per quintal for their sugarcane in the 2025–26 season. This decision underscores the government’s commitment to protecting the interests of sugarcane farmers and ensuring they receive fair compensation irrespective of the recovery rates.

Why This News Is Important

Significance for Sugarcane Farmers

The FRP hike directly benefits sugarcane farmers by increasing their income and providing a fair price for their produce. This move is expected to alleviate financial pressures and incentivize increased sugarcane cultivation.

Economic Implications

By enhancing farmers’ income, the government aims to stimulate rural economies, promote agricultural growth, and contribute to the overall economic development of the country.

Policy Alignment

The decision aligns with the government’s broader agricultural policies and objectives, including the “Modi ki Guarantee” initiative, which aims to double farmers’ income and ensure fair remuneration for their produce.

Historical Context

Evolution of FRP in India

The concept of Fair and Remunerative Price (FRP) was introduced by the government to ensure that sugarcane farmers receive a fair price for their produce. Over the years, the FRP has been revised periodically to reflect changes in production costs, market conditions, and the need to provide adequate remuneration to farmers.

Previous FRP Hikes

In the 2024–25 season, the FRP was set at ₹340 per quintal, marking an increase from the previous season. The current hike to ₹355 per quintal continues the trend of periodic adjustments aimed at supporting farmers and promoting sustainable agricultural practices.

Key Takeaways from ‘Cabinet Approves Sugarcane FRP Hike to ₹355 per Quintal for 2025–26 Season’

FAQs: Frequently Asked Questions

1. What is the newly approved FRP for sugarcane for the 2025–26 season?

• The Fair and Remunerative Price (FRP) for sugarcane for the 2025–26 season has been approved at ₹355 per quintal.

2. How much has the FRP been increased compared to the previous season?

• The FRP has been increased by ₹15 per quintal from the previous season’s ₹340 per quintal.

3. Who benefits from the FRP hike?

• Approximately 5 crore sugarcane farmers across India will benefit from the FRP hike.

4. How is the FRP for sugarcane determined?

• The FRP is based on a basic recovery rate of 10.25%. For every 0.1% increase or decrease in recovery, the FRP is adjusted by ₹3.32 per quintal.

5. What happens if a sugar mill’s recovery rate is below 9.5%?

• If the sugar mill’s recovery rate is below 9.5%, farmers will receive ₹329.05 per quintal for their sugarcane in the 2025–26 season.

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