Centre hikes sugarcane price by 4.41% to Rs 355 per quintal

The Centre on Wednesday on Wednesday approved a 4.41 per cent increase in the Fair and Remunerative Price (FRP) of sugarcane, setting it at Rs 355 per quintal for the 2025–26 season, which begins in October.

A decision in this regard was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA).

The current FRP for the 2024–25 season stands at Rs 340 per quintal.

FRP is the minimum price mandated by the Government of India that sugar mills are legally obligated to pay sugarcane farmers for their produce.

Briefing media after the CCEA meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the FRP of Rs 355 per quintal has been approved for a basic recovery rate of 10.25 per cent.

“The FRP for sugar season 2025-26 is 4.41 per cent higher than current sugar season 2024-25,” an official statement said.

A premium of Rs 3.46 per quintal for each 0.1 per cent increase in sugar recovery over and above 10.25 per cent will be provided to farmers. A reduction in FRP by Rs 3.46 per quintal will be for every 0.1 per cent decrease in recovery rate.

The government has also decided that there will not be any deduction in case of sugar mills where recovery is below 9.5 per cent. Such farmers will get Rs 329.05 per cent for sugarcane in the ensuing 2025-26 season.

In another decision, the Union Cabinet approved the development of a greenfield high-speed corridor from Mawlyngkhung in Meghalaya to Panchgram in Assam on hybrid annuity mode at a cost of Rs 22,864 crore.

According to an official statement, the project length of 166.80 km (NH-6) lies in Meghalaya (144.80 km) and Assam (22 km).

Vaishnaw assured that all safety measures and environmental norms have been kept in mind while allaying apprehensions regarding major cutting down of forests and excavation of hills to construct the corridor, which will consist of several tunnels and culverts and bypasses.

India