Minimum Sugarcane Price Increased to ₹365 per Quintal for 2026-27 Season
Sugarcane FRP hiked to Rs 365/quintal for 2026-27 season
The Economic TimesImage: The Economic Times
The Indian government has increased the minimum price for sugarcane to ₹365 per quintal for the 2026-27 season, up from ₹355. This decision is expected to benefit approximately 50 million sugarcane farmers and 500,000 workers in related sectors, reflecting a commitment to support agricultural incomes.
- 01Minimum sugarcane price raised to ₹365 per quintal for 2026-27 season.
- 02Farmers will receive a premium for recovery rates above 10.25%.
- 03No deductions for sugar mills with recovery below 9.5%.
- 04The new price is 100.5% higher than the estimated production cost.
- 05The decision impacts around 5 crore farmers and 5 lakh workers.
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The Indian government has announced an increase in the minimum price payable to sugarcane farmers to ₹365 per quintal for the 2026-27 season, up from ₹355 in the previous year. This price is based on a basic recovery rate of 10.25%, with farmers receiving a premium of ₹3.56 per quintal for every 0.1% increase in recovery above this level. Notably, there will be no deductions for mills where recovery is below 9.5%, ensuring that farmers in such cases will still receive ₹338.3 per quintal. This new pricing structure is 100.5% higher than the estimated cost of production, which stands at ₹182 per quintal, and represents a 2.81% increase from the ongoing 2025-26 season. The decision is set to benefit approximately 5 crore sugarcane farmers and 5 lakh workers in sugar mills and related sectors, highlighting the government's commitment to supporting agricultural livelihoods.
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The increase in sugarcane prices is expected to significantly enhance the income of sugarcane farmers, improving their financial stability and supporting the livelihoods of workers in the sugar industry.
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