Sugarcane farmers are paid by sugar mills under a price system fixed by the government. The key figure is the Fair and Remunerative Price (FRP). Here is what it means.
What is FRP
The FRP is the minimum price that sugar mills must pay farmers for sugarcane. It is fixed by the Central Government under the Sugarcane (Control) Order, 1966, based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consulting states and other stakeholders. The FRP system replaced the earlier Statutory Minimum Price from the 2009-10 season.
FRP for 2025-26
In April 2025, the Cabinet Committee on Economic Affairs approved an FRP of Rs 355 per quintal for the 2025-26 sugar season (October to September), linked to a basic recovery rate of 10.25 percent. Key points as announced:
- A premium of Rs 3.46 per quintal for every 0.1 percentage point increase in recovery above 10.25 percent
- A reduction of the same amount for every 0.1 percentage point fall in recovery
- No deduction for mills with recovery below 9.5 percent, where farmers get Rs 329.05 per quintal
For the next season, farmers should check the official announcement from the government. This article does not predict future prices.
What is recovery
Recovery is the percentage of sugar produced from a quantity of cane. For example, 10.25 percent recovery means about 10.25 kg of sugar from one quintal of cane. Better varieties and timely harvest and crushing improve recovery.
Also Read: How MSP Is Fixed in India: Role of CACP, the 1.5 Times Cost Formula and Rabi Crops Covered | eNAM Registration for Farmers: How to Sell Crops Online on the National Agriculture Market
FRP and SAP
Some states, such as Uttar Pradesh, Punjab and Haryana, announce a State Advised Price (SAP), which is usually higher than the FRP. Mills in those states have to pay the SAP. Farmers should check their state cane department notices.
Payment rules
Under the Sugarcane (Control) Order, mills are required to pay cane dues within 14 days of delivery. Delayed payment can attract interest, and state cane departments monitor arrears.
Tips for farmers
- Register your cane area with the mill or cooperative society on time.
- Use recommended varieties for your region and follow ratoon management advice.
- Keep supply slips and check payments in your bank account.
- Raise complaints about pending dues with the cane commissioner’s office.
Advice for farmers
Before sowing, selling or storing your crop, check the latest information with your district agriculture department, Krishi Vigyan Kendra or mandi committee.
Bottom line
The FRP sets the floor price for sugarcane across India. Know the current FRP, your state’s SAP and your payment rights.
Source / स्रोत: Press Information Bureau, Commission for Agricultural Costs and Prices
