Trade Union Minister Ashwini Vaishnaw briefed the cabinet decision on April 30, 2025. Image source: Shiv Kumar Pushpakar
The government decided on Wednesday (April 30, 2025) to increase the fair and reward price (FRP) of sugar cane by 4.41% to Rs 355 per punch.
A formal statement said the decision in this regard was made at the meeting of the Cabinet Committee on Economic Affairs (CCEA).
In the current 2024-25 season, the sugarcane FRP is fixed at Rs 340 per male punch.
FRP is the lowest price set by the Indian government, that is, sugar mills are legally obliged to pay sugarcane farmers their produce.
After the meeting, I&B Minister Ashwini Vaishnaw said that the FRP of Rs 355 per male punch has been approved with a basic recovery rate of 10.25%.
“The FRP for sugar season 2025-26 is 4.41% higher than the current sugar season 2024-25,” the statement said.
The premium per quintal per boxing is Rs 3.46 per punch, with a 0.1% increase in profit per kilometre per punch rate, which will provide farmers with a premium of over 10.25%. The FRP per male fist is reduced by Rs 3.46 per male fist, and the recovery rate is reduced by Rs 3.46 per duke level.
The government also decided that if the sugar factory resumes below 9.5%, it will not be deducted. In the subsequent 2025-26 season, such farmers will receive Rs 329.05% for sugarcane.
According to the statement, the sugar cane production cost for sugar season 2025-26 is Rs 173 per kilometer. The 2025-26 FRP is fixed at Rs 355 per male fist, with a recovery rate of 105.2% higher than the recovery rate of production costs.
The sugar industry is an important agriculture-based industry that affects the livelihoods of approximately 50 million sugarcane farmers and their families, as well as about half a million workers, in addition to sugar factories that engage in various auxiliary activities, including farm labor and transportation.
The FRP has been determined in consultation with the state government and other stakeholders based on the recommendations of the Agricultural Cost and Price Commission (CACP).
As of April 28, about 87% of the total sugarcane payment tax of Rs 972,700 crore had been paid to farmers during the 2024-25 season, while 99.92% of the total sugarcane payment amount had a total income of Rs 1,11,782 crore to pay farmers in 2024-25.
publishing – April 30, 2025 05:22 pm ist
