**Executive Summary:**
This document addresses Lok Sabha Unstarred Question No. 1698 regarding the Fair and Remunerative Price (FRP) for sugarcane procurement. It details the revised FRP for the 2025-26 sugar season, its impact on sugarcane farmers, representations received, compensation for cultivation costs, and steps taken to ensure timely payments and penalties for defaulting mills. The answer was provided on July 30, 2025, by the Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution.
**Key Points / Main Content:**
* **Revised Fair and Remunerative Price (FRP):**
* For the 2025-26 sugar season, the FRP is ₹355 per quintal at a 10.25% basic recovery level.
* A premium of ₹3.46 per quintal is provided for each 0.1% increase in recovery above 10.25%.
* There is a reduction in FRP by ₹3.46 per quintal for every 0.1% decrease in recovery.
* For the current 2024-25 sugar season, the FRP is ₹340 per quintal at a 10.25% basic recovery level.
* **FRP Adequacy and Cost Coverage:**
* The Commission for Agricultural Costs and Prices (CACP) recommends the FRP, covering A2FL costs and providing a 105.2% margin over production costs at the national level.
* CACP considers sugarcane production costs, market prices of sugar and byproducts, sugar recovery rates, farmer margins, and returns from alternate crops.
* **Payment of Dues to Farmers:**
* State Governments/UTs are responsible for monitoring cane price payments and taking action in case of delays.
* Under Section 38 of the Sugarcane Control Order, 1966, Revenue Recovery Certificates (RRCs) can be issued against defaulting factories.
* The Government of Maharashtra has issued 28 RRCs, with 16 mills paying 100% FRP.
* Crushing licenses for new sugar seasons are not issued in Maharashtra until previous season dues are cleared.
* **Representations and Demands:**
* No representations or demands were received regarding the adequacy of the new FRP.
**Impact Analysis:**
* **Sugarcane Farmers:**
* *Impact:* The revised FRP directly affects the income of sugarcane farmers. The premium/reduction based on recovery rates incentivizes/disincentivizes higher/lower sugar recovery. Timely payment of dues ensures financial stability.
* *Action Required:* Farmers should be aware of the FRP and its calculation based on recovery rates. They should also report any delays in payment to the State Governments/UTs.
* **Sugar Mills:**
* *Impact:* Sugar mills are obligated to pay the FRP and are subject to penalties for delays, including RRCs and denial of crushing licenses.
* *Action Required:* Ensure timely payment of cane dues to farmers to avoid penalties. Adhere to the FRP as per the recovery rate.
* **State Governments/UTs:**
* *Impact:* Responsible for monitoring cane price payments, taking action against delays, and issuing RRCs.
* *Action Required:* Monitor payments, take action against defaulting mills, and ensure that dues from previous seasons are paid before issuing new crushing licenses.
Key Entities Referenced
Fair and Remunerative Price (FRP): The minimum price that sugar mills are required to pay to sugarcane farmers for their produce, as announced by the Government.
Sugarcane Control Order, 1966: A legal order that provides a framework for regulating the sale, purchase, and price of sugarcane.
Commission for Agricultural Costs and Prices (CACP): An advisory body that recommends the FRP for sugarcane, considering various factors related to production costs and market conditions.
Maharashtra: A state in India that is a major sugarcane producer, with specific districts mentioned (Kolhapur, Solapur, Pune, and Ahmednagar).
Kolhapur, Maharashtra: A district in Maharashtra known for sugarcane production.
Solapur, Maharashtra: A district in Maharashtra known for sugarcane production.
Pune, Maharashtra: A district in Maharashtra known for sugarcane production.
Ahmednagar, Maharashtra: A district in Maharashtra known for sugarcane production.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 1698
TO BE ANSWERED ON 30TH JULY, 2025
FRP FOR SUGARCANE PROCUREMENT
1698. SMT. SUPRIYA SULE:
DR. AMOL RAMSING KOLHE:
PROF. VARSHA EKNATH GAIKWAD:
SHRI BHASKAR MURLIDHAR BHAGARE:
SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) whether the Government has recently announced a revised Fair and Remunerative Price
(FRP) for sugarcane procurement for the current crushing season and if so, the details thereof;
(b) the impact of the revised FRP on sugarcane farmers in Maharashtra, particularly in
districts like Kolhapur, SoIapur, Pune, and Ahmednagar, which are among the top producers;
(c) whether the Government has received any representations or demands from sugarcane
farmers or cooperative sugar mills in Maharashtra regarding the adequacy of the new FRP and
if so, the details thereof;
(d) whether the current FRP sufficiently compensates for the rising cost of cultivation,
labour, water and inputs borne by farmers in Maharashtra and if so, the details thereof;
(e) the details of the steps taken by the Government to ensure timely payment of dues to
sugarcane farmers in the said State by sugar mills; and
(f) whether any penalties are imposed on defaulting mills and if so, the details thereoP
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)-2-
(a): Yes. The Government has announced Fair and Remunerative Price (FRP) of sugarcane
for ensuing Sugar Season 2025-26 at ? 355 per quintal at a basic recovery level of 10.25%
providing a premium of ? 3.46/qtl for each 0.1% increase in recovery over and above 10.25%
& reduction in FRP by ? 3.46/qtl for every 0.1% decrease in recovery. For the current Sugar
Season 2024-25 the FRP of sugarcane has been fixed at ? 340 per quintal at a basic recovery
level of 10.25%.
(b): FRP recommended by the Commission for Agricultural Costs and Prices (CACP)
covers the A2+FL (actual paid-out costs plus imputed family labour) cost of production for
all sugarcane producing States and gives a margin of 105.2 percent over the cost of production
at the national level.
(c) : No.
(d): The FRP is recommended by C ACP considering various factors like cost of production
of sugarcane, market price of sugar and by-products, sugar recovery rates, reasonable margins
for farmers, returns from alternate crops etc.
(e) and (f): Payment of cane dues to farmers is a continuous process and the powers have been
delegated and vested with the State Governments/UTs for monitoring the cane price payrnent
position of sugar factories on periodical basis and in case of delay in payments, suitable action
is taken by them.
If the FRP amount is not paid or is delayed, action under section 3(8) of the Sugarcane
(Control) Order, 1966, can be initiated against the concerned factory by issuing a Revenue
Recovery Certificate (RRC) by the State Government.
The Government of Maharashtra has issued 28 RRCs against sugar mills in the State,
out of which 16 sugar mills paid 100% FRP. Further, crushing licences for new sugar season is
not issued by Government of Maharashtra unless the dues for the previous seasons is paid.
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