New Delhi [India], May 6 : Prime Minister Narendra Modi on Tuesday reaffirmed the government's commitment to farmer welfare after the Cabinet Committee on Economic Affairs approved the Fair and Remunerative Price (FRP) of sugarcane for the 2026-27 season (October to September) at Rs 365 per quintal.
In a post on X, the Prime Minister said the decision reflects the government's focus on supporting "farmer brothers and sisters" across the country. He said the revised FRP would benefit millions of sugarcane farmers, while also strengthening sugar mills and supporting lakhs of workers dependent on the sector.
"We are fully committed to the welfare of our farmer brothers and sisters, the food providers across the country. In line with this, approval has today been granted to set the fair and beneficial price of sugarcane at 365 rupees per quintal for the 2026-27 season. This will benefit millions of sugarcane farmers, while also providing advantages to sugar mills and lakhs of workers associated with this sector," PM Modi said.
According to an official release, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved Rs.365 per quintal for a basic recovery rate of 10.25 per cent, with a premium of Rs 3.56 per quintal for every 0.1 per cent increase in recovery and a corresponding reduction for lower recovery levels. It also ensured that no deductions would apply for mills with recovery below 9.5 per cent, guaranteeing farmers a minimum price of Rs 338.3 per quintal.
The government said the approved FRP is over 100.5 per cent higher than the cost of production and 2.81 per cent higher than the previous season, reflecting efforts to ensure fair returns and timely payments to farmers.
The FRP will be applicable from October 1 for sugar mills procuring sugarcane during the 2026-27 season. The sugar sector supports the livelihoods of about five crore farmers and their dependents, along with around five lakh workers employed directly in mills and many more engaged in allied activities, the press release stated.
The decision was based on recommendations of the Commission for Agricultural Costs and Prices (CACP) after consultations with state governments and stakeholders.
The government also highlighted improved cane payment clearance, stating that in the 2024-25 season, about 99.5 per cent of dues have been paid, while in the 2025-26 season, around 88.6 per cent of dues have already been cleared as of April 20.