Economy 07 May 2026

Cabinet Approves Rs. 365 Per Quintal Sugarcane FRP for 2026-27 Season

The CCEA has approved a Fair and Remunerative Price (FRP) of Rs. 365 per quintal for sugarcane for the 2026-27 season at a 10.25% recovery rate, effective 1 October 2026, benefiting nearly 5 crore farmers.

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The Cabinet Committee on Economic Affairs (CCEA) has approved a Fair and Remunerative Price (FRP) of Rs. 365 per quintal for sugarcane for the Sugar Season 2026-27. The FRP is the minimum price that sugar mills must legally pay to farmers for their sugarcane.

This rate applies at a basic sugar recovery rate of 10.25% and will take effect from 1 October 2026. The recovery rate is the amount of sugar obtained from the cane.

Farmers will get an additional premium if the recovery rate is higher than 10.25%, while a deduction applies if the recovery is lower. This links the price farmers receive to the quality of their crop.

The decision is expected to benefit nearly 5 crore sugarcane farmers, as well as lakhs of workers employed in sugar mills and related industries. The FRP system aims to ensure fair payment to farmers while keeping the sugar sector stable.

Key Points to Remember

  • CCEA approved sugarcane FRP of Rs. 365 per quintal for Sugar Season 2026-27
  • Applicable at a basic recovery rate of 10.25%
  • Effective from 1 October 2026
  • Premium for higher recovery; deduction for lower recovery
  • Expected to benefit nearly 5 crore sugarcane farmers
  • FRP is the minimum price mills must pay farmers

Exam Relevance

Relevant for UPSC Prelims (Economy — Agriculture, MSP/FRP), SSC CGL (General Awareness) and Banking exams (Current Affairs).

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frp sugarcane ccea agriculture farmers