India's Cabinet Committee sets sugarcane FRP at ₹365 per quintal
Sugar mills must price 2026-27 cane purchases under the FRP formula
PIB
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Change
India's Cabinet Committee approved a ₹365-per-quintal sugarcane FRP for Sugar Season 2026-27, applicable to sugar mill purchases from 1 October 2026.
Why it matters
The FRP applies at a 10.25% basic recovery rate. Sugar mills must adjust payments by ₹3.56 per quintal for each 0.1% recovery change above or below that rate. Mills with recovery below 9.5% cannot apply further deductions and must pay ₹338.3 per quintal.
Implications
- — Sugar mill cane-procurement teams must apply the 2026-27 FRP formula from 1 October 2026 — purchases priced below the notified terms breach the government-set purchase condition.
- — Sugar mill payment teams must calculate recovery-linked adjustments at ₹3.56 per quintal for each 0.1% recovery change — incorrect recovery treatment misstates farmer payments.
- — Sugar mill finance teams with recovery below 9.5% must apply the ₹338.3-per-quintal floor — further deductions breach the no-deduction rule.
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