The Indian government has raised the fair and remunerative price (FRP) of sugarcane by ₹10 to ₹365 per quintal for the 2026-27 sugar season, marking a 2.81% increase from the previous year. This decision aims to support the livelihoods of nearly 55 million sugarcane farmers across the country, potentially generating an additional income of over ₹15,000-20,000 crore. However, industry stakeholders express concerns about the impact of stagnant minimum selling prices of sugar, which have remained at ₹31/kg since February 2019, and rising costs of sugarcane cultivation, harvesting, and transportation. Farmers argue that the FRP increase is inadequate given their production costs, which have soared to nearly ₹1,000 per tonne. Experts warn that without adjustments in sugar and ethanol prices, sugar mills may struggle to maintain operational stability, leading to increased cane arrears and delayed payments to farmers. The sugar industry is also facing challenges from rising competition in the ethanol market and a decline in the share of ethanol produced from sugar-based feedstocks, which fell to 28% in the 2025-26 Ethanol Supply Year. The situation raises questions about the long-term sustainability of the sugar industry and the financial health of both farmers and mills.