Cabinet clears hike in sugarcane price to Rs 355/100 kg—Key things to know

Sugarcane Price Marketing Season 2025-26: The Union Cabinet on Wednesday approved a fair and remunerative price (FRP) for sugarcane. A price of Rs 355 per quintal was cleared, Union Minister Ashwini Vaishnaw announced after the Cabinet meeting. The latest price is for the 2025-26 sugar marketing season and marks an increase of Rs 15 or 4.4 per cent over the previous year's price.

The declision is set to impact more than five crore sugarcane farmers (including family members) and several lakhs of other people involved in the domestic sugar industry.

The hike in the sugarcane price is in tandem with the Narendra Modi government's ambitious to boost the incomes of the country's farmers.

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What is the sugarcane FRP and how does it impact the farmer?

FRP is the minimum price that sugarcane growers are entitled to receive from sugar mills for their produce.

The price is arrived at on the basis of the Commission for Agricultural Costs and Prices' recommendations approved by the Cabinet Committee on Economic Affairs (CCEA).

Sugar marketing season in India: Cabinet approves sugarcane FRP

The marketing season for the sweetener runs from October to September in India.

The government determines the price for the crop on the basis of a number of factors, including production cost, alternative crop returns and market price.

The price is aimed at ensuring a guaranteed income to sugarcane farmers in the country.

India already pays the highest price in the world to domestic farmers.

Over the past decade, the central government has ensured the right price for sugarcane. Timely government interventions have helped in empowering sugar growers and making sugar mills more self-sustainable.