A Rs 10 increase in sugarcane FRP has drawn sharp reactions on both sides. Farmers argue the revised rate is too low to cover rising costs, while sugar mills warn that payments are already under strain and could deepen arrears. The small hike is now triggering bigger questions about pricing, procurement, and whether the season’s finances can hold.
The government has raised the sugarcane Fair and Remunerative Price (FRP) to Rs 365 per quintal for the 2026–27 season. The new payment structure links farmers earnings to sugar recovery levels: a premium of Rs 3.56 per quintal is added for every 0.1% increase above the defined recovery threshold, while lower recovery reduces payouts accordingly.
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The government has raised the minimum support price for sugarcane, fixing FRP at Rs 365 per quintal for the 2026-27 season. The increase by Rs 10 is intended to support about one crore farmers and strengthen the sugar industry. Sugar recovery-linked incentives also apply, with set pricing for farmers supplying to lower-recovery mills.
The Centre has proposed a new Sugarcane (Control) Order 2026, replacing the 1966 framework, and is seeking public comments by May 20. While it retains core obligations like FRR and payment deadlines, the draft adds ethanol-focused conversion formulae, digital compliance requirements, and a formal approval process for new factories.
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