Farmers Criticize Modest Sugarcane Price Hike Amid Rising Costs
Millers welcome sugarcane FRP hike; farmers say ₹10 rise too meagre
Business Standard
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The Indian government has increased the Fair and Remunerative Price (FRP) of sugarcane by ₹10 to ₹365 per quintal for the 2026-27 season. While millers welcome the hike as beneficial, farmers argue it is insufficient given soaring cultivation costs, calling for a pricing formula that reflects actual production expenses.
- 01The FRP of sugarcane has been raised by ₹10 to ₹365 per quintal.
- 02The Indian Sugar and Bio-Energy Manufacturers Association sees the hike as beneficial for farmers.
- 03Farmers argue the increase is inadequate against rising input costs.
- 04A call for a pricing formula that includes comprehensive production costs and profit margins.
- 05The revised FRP is expected to generate an additional income of ₹15,000-20,000 crore for farmers.
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The Indian government's recent decision to raise the Fair and Remunerative Price (FRP) of sugarcane by ₹10 to ₹365 per quintal for the 2026-27 season has sparked mixed reactions. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) welcomed the increase, stating it reflects the government's commitment to farmer welfare and could generate an additional income of ₹15,000-20,000 crore for sugarcane farmers, bringing total cane payments to approximately ₹1.3 lakh crore. This increase is viewed as a positive step that could boost rural demand and support the agricultural economy in sugarcane-dependent regions. However, farmers have criticized the hike as grossly inadequate, arguing that it does not sufficiently address the rising costs of cultivation, including diesel, fertilizers, labor, and transportation. Dharmendra Malik, a spokesperson for the Bhartiya Kisan Union (non-political), emphasized the need for a pricing system based on actual production costs, including a 50% profit margin, to ensure farmers' economic stability.
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The modest increase in sugarcane prices may not significantly alleviate the financial burden on farmers, who face rising input costs, potentially affecting their livelihoods.
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