Economy

Fair and Remunerative Price (FRP) of Sugarcane

GS3 AgricultureGS3 Farm pricingPrelims and Mains

In the news since 5 May 2026

Why in news
On 5 May 2026, the Cabinet Committee on Economic Affairs approved an FRP of Rs 365 per quintal for sugarcane for the 2026-27 sugar season, starting 1 October 2026.
What it is
The Fair and Remunerative Price is the minimum price sugar mills must pay farmers for sugarcane. The Centre fixes it each sugar season on the recommendation of the CACP, after consulting States. It is linked to a basic sugar recovery rate, with a premium or reduction as recovery changes.
FRP level
FRP for 2026-27 is Rs 365/qtl at a basic recovery rate of 10.25%.
Who recommends
FRP is set on CACP recommendations after consulting States and stakeholders.
Season and applicability
The sugar season runs October to September; the FRP applies to purchases by mills from 1 October 2026.
Legal basis
FRP is fixed under the Sugarcane (Control) Order, 1966, issued under the Essential Commodities Act, 1955; it replaced the Statutory Minimum Price in 2009-10.

Don’t confuse with FRP vs SAP: FRP is the Centre's minimum price. State Advised Price is set by some States, often higher.

Don’t confuse with FRP vs MSP: MSP applies to notified crops with government procurement support. FRP is a legally mandated price paid by mills, not procured by the government.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

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Worth revising until Prelims 2027: most news questions come within two years of the event.

Each time it was in the news

  1. 5 May 2026

    On 5 May 2026, the Cabinet Committee on Economic Affairs approved an FRP of Rs 365 per quintal for sugarcane for the 2026-27 sugar season, starting 1 October 2026.