**Executive Summary**
This document presents the Ministry of Agriculture and Farmers Welfare's response to a parliamentary question regarding the support price for sugarcane. It details the Fair and Remunerative Price (FRP) fixed for the 2025-26 sugar season, measures for sugarcane procurement, and the procurement details in Tamil Nadu. The response was prepared for an answer on December 9th, 2025.
**Key Points / Main Content**
* **Fair and Remunerative Price (FRP):**
* FRP for Sugarcane set at Rs. 355 per quintal for the 2025-26 season with a basic recovery rate of 10.25.
* Premium of ₹3.46 per quintal for every 0.1 percentage point increase above 10.25% sugar recovery.
* Reduction of ₹3.46 per quintal for every 0.1 percentage point decrease in recovery for factories with recovery below 10.25% but above 9.5%.
* FRP fixed at ₹ 329.05 per quintal for sugar factories with recovery of 9.5% or less.
* The recommended FRP covers A2 + FL (Paid out cost plus imputed value of family labor) cost of production.
* Gives a margin of 105.2 percent over the cost of production at the national level.
* **Sugarcane Procurement:**
* Sugarcane is procured by sugar mills at the FRP fixed by the Central Government.
* State Governments are delegated to regulate distribution and movement of sugarcane under the Power of Sugarcane (Control) order, 1966.
* State Governments may reserve areas where sugarcane is grown for a sugar factory.
* **Tamil Nadu Procurement Details:**
* The Government of Tamil Nadu does not procure sugarcane directly from farmers; procurement is carried out by sugar mills.
* District-wise sugarcane procurement and payments made to farmers in Tamil Nadu for the current season are:
* Kallakurichi: 1.28 LMT procured; Rs. 42.12 Cr. paid to farmers.
* Namakkal: 0.51 LMT procured; Rs. 16.78 Cr. paid to farmers.
* Thiruvallur: 0.05 LMT procured; Rs. 1.65 Cr. paid to farmers.
* Thiruvannamalai: 0.34 LMT procured; Rs. 11.19 Cr. paid to farmers.
* Total: 2.18 LMT procured; Rs. 71.74 Cr. paid to farmers.
**Impact Analysis**
**Sugarcane Farmers**
**Impact**
Affected by the FRP, which determines the price they receive for their sugarcane. The procurement process, regulated by state governments, directly impacts their ability to sell their produce.
**Action Required**
Farmers need to be aware of the FRP rates and any applicable premiums or deductions based on sugar recovery. They should coordinate with sugar mills to ensure timely harvesting and supply.
**Sugar Mills**
**Impact**
Responsible for procuring sugarcane at the FRP fixed by the Central Government. They must coordinate with farmers for harvesting and supply.
**Action Required**
Adhere to the FRP set by the Central Government. Follow guidelines for payment to farmers.
Plan crushing operations, coordinate harvesting with farmers, and ensure timely supply.
**State Governments (Specifically Tamil Nadu)**
**Impact**
Responsible for regulating the distribution and movement of sugarcane within the state.
**Action Required**
Enforce regulations regarding sugarcane distribution and movement under the Power of Sugarcane (Control) order, 1966.
Key Entities Referenced
Sugarcane (Control) Order, 1966: An order regulating the distribution and movement of sugarcane.
Fair and Remunerative Price (FRP): The price fixed by the Central Government for sugarcane, payable by sugar mills to farmers.
Commission for Agricultural Costs and Prices (CACP): An advisory body that recommends the FRP of sugarcane.
Ministry of Agriculture and Farmers Welfare: The ministry responsible for matters related to agriculture and farmers' welfare.
Tamil Nadu: A state in India relevant to the procurement and payment details.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1473
TO BE ANSWERED ON THE 9TH DECEMBER, 2025
SUPPORT PRICE FOR SUGARCANE
1473. Dr. M K VISHNU PRASAD:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष और (cid:873)कसान क(cid:227)याण मं(cid:287)ी
be pleased to state:
(a) the details of current support price for sugarcane and how does it compare to the
cost of production;
(b) the details of measures is the Government taking to ensure timely and adequate
procurement of sugarcane from farmers;
(c) the quantum of sugarcane procured by the Government in the current season, State-
wise and district-wise in Tamil Nadu; and
(d) the details of the total amount paid to the farmers State-wise and district-wise in
Tamil Nadu?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण रा(cid:207)य म(cid:287)ं ी (SHRI RAMNATH THAKUR)
(a): As per the information received from Department of Food and Public Distribution, on
the basis of recommendation of Commission for Agricultural Costs and Prices (CACP), the
Fair and Remunerative Price (FRP) of Sugarcane has been fixed at Rs. 355 per quintal for
Sugar Season 2025-26 with a basic recovery rate of 10.25. A premium of ₹3.46 per quintal
is to be given for every 0.1 percentage point increase above 10.25% in the sugar recovery,
reduction in FRP is to be made proportionately by ₹3.46 per quintal for every 0.1
percentage point decrease in recovery, in respect of those factories whose recovery is
below 10.25% but above 9.5%. However, for sugar factories having recovery of 9.5% or
less, FRP is fixed at ₹ 329.05 per quintal. The recommended FRP covers the A2 + FL (Paid
out cost plus imputed value of 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.
(b): Sugarcane is procured by sugar mills at the FRP fixed by the Central Government.
Power of Sugarcane (Control) order, 1966 to regulate distribution and movement of
sugarcane has been delegated to State Governments. As per the provision of Sugarcane
(Control) order, 1966, the State Government may reserve area where sugarcane is grownfor a sugar factory and direct a sugarcane grower or a sugarcane growers’ co-operative
society, supplying sugarcane to a factory, and the factory concerned to enter into an
agreement to supply or purchase, as the case may be, the quantity of sugarcane so fixed.
To maintain uninterrupted crushing operations, sugar mills plan their daily crushing
requirements in advance and coordinate with farmers to ensure timely harvesting and
supply of sugarcane.
(c) & (d): The Government of Tamil Nadu does not procure sugarcane from farmers. The
procurement of sugarcane is carried out by the respective sugar mills.
The district-wise quantity of sugarcane procured by sugar mills in Tamil Nadu, along
with the payment made by the sugar mills to farmers for the sugarcane procured during the
current season, is given below:
Name of the District Sugarcane procured Total amount paid to the
during 2025-26 (in LMT) farmers 2025-26 (Rs. in
Cr.)
Kallakurichi 1.28 42.12
Namakkal 0.51 16.78
Thiruvallur 0.05 1.65
Thiruvannamalai 0.34 11.19
Total 2.18 71.74
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