The government on Wednesday approved the Minimum Support Price (MSP) of sugarcane at Rs 355 per quintal for the sugar season 2025-26.
The decision was taken at the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here.
Addressing the media, Union Information and Broadcasting Minister said that this decision will benefit five crore sugarcane farmers and their dependents, as well as five lakh workers employed in the sugar mills and related ancillary activities.
He said that for this a premium of Rs 3.46 per quintal would be given to the farmers for every increase of 0.1 per cent. Apart from this, to protect the interests of sugarcane farmers, the government has also decided that no deduction will be made in the case of sugar mills whose recovery is less than 9.5 percent. The production cost of sugarcane for sugar season 2025-26 is Rs 173 per quintal.
Sugar season 2025-26 will commence from October 1, 2025 and the prices will be applicable for purchasing sugarcane from farmers.
Notably, the FRP has been determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stake-holders.
In the previous sugar season 2023-24, out of cane dues payable of Rs 1,11,782 crores about Rs 1,11,703 crores cane dues have been paid to farmers, as on 28.04.2025, thus, 99.92 percent cane dues have been cleared.
In the current sugar season 2024-25, out of cane dues payable of Rs 97,270 crore about Rs 85,094 crores cane dues have been paid to farmers, as on 28.04.2025; thus, 87 percent cane dues have been cleared.
