The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a ₹10 per quintal increase in the Fair and Remunerative Price (FRP) of sugarcane for the 2026-27 sugar season, effective from October 2026. The new FRP is set at ₹365 per quintal for a base sugar recovery rate of 10.25%.

The government will offer a premium of ₹3.56 per quintal for every 0.1% increase in sugar recovery above 10.25%, and impose a corresponding deduction of ₹3.56 per quintal for every 0.1% shortfall. The FRP is legally binding on sugar mills and aims to ensure timely payments to sugarcane farmers.

The decision, taken during the Cabinet Committee on Economic Affairs meeting on May 5, 2026, follows recommendations from the Commission for Agricultural Costs and Prices. It applies to all sugar mills across India for the upcoming sugar season running from October to September.

Officials stated the revised pricing structure is intended to balance farmer income support with the financial sustainability of sugar mills. The Ministry of Consumer Affairs, Food and Public Distribution will issue guidelines for implementation ahead of the season.