PM Modi led CCEA approves FRP of Rs 355 per quintal for sugarcane
Agriculture
4 min read
The Cabinet Committee on Economic Affairs (CCEA) approved the Fair and Remunerative Price (FRP) for sugarcane in a meeting held in New Delhi on 30 April 2025.
The sugarcane season in India is from October to September.
The meeting of the CCEA was chaired by the Prime Minister, Narendra Modi and attended by relevant Cabinet Ministers of the government.
New FRP for Sugar season 2025-26
- For a basic recovery rate of 10.25 %, the sugar mills will pay the farmers Rs 355 per quintal. It represents a 4.41% increase compared to the 2024-25 sugar season.
- For every 0.1 percentage point increase in sugar recovery above the basic rate, a premium of 3.46 per quintal will be paid to the farmer.
- A penalty of Rs 3.46 per quintal will be levied for every 0.1 percentage point decrease from the basic recovery level.
- Where the recovery is less than 9.5%, the sugar mill will pay a flat rate of Rs 329.05 per quintal to the farmer.
Role of CACP in FRP
The Commission on Agricultural Costs and Prices (CACP), under the Union Ministry of Agriculture and Farmers' Welfare, recommends the FRP to the Government of India.
However, the government is not obligated to accept the CACP's recommendations.
The CACP considers the following factors before recommending the FRP for a sugar season.
- Cost of production of sugarcane,
- returns to the growers from alternative crops,
- demand-supply and price situation of sugar in domestic and world markets,
- Making available sugar to the consumers at a fair price,
- recovery of sugar from sugarcane,
- realisation made from the sale of primary by-products and
- reasonable margins for the growers of sugarcane on account of risk and profits.
Sugarcane and Sugar Production
According to the Food and Agriculture Organisation (FAO), the top five sugarcane-producing countries in the world in 2022 were Brazil, India, China, Thailand, and Pakistan.
India’s share in global sugarcane production was 22.9%, while Brazil's share was 37.7%.
India recorded the highest yield at 84.9 tonnes per hectare in 2022.
Sugar
India was the second-largest producer of sugar in the world after Brazil.
Brazil is the largest exporter of raw sugar, followed by India, Thailand and Australia.
India is the largest exporter of refined sugar.
Within India
In the sugar season 2023-24
- Uttar Pradesh was the largest producer of sugarcane, accounting for 44.8% of the total production. Maharashtra was in second place with a contribution of 25.5%, and Karnataka (11.7%) was in third place.
- In terms of sugar production, Maharashtra was the largest producer, with a 35 per cent share in national production, followed by Uttar Pradesh (30.7 per cent) and Karnataka at 17.3 per cent.
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