Fair and Remunerative Price Context: The Cabinet Committee on Economic Affairs increased the Fair and Remunerative Price (FRP) of sugarcane by ₹10 to ₹365 per quintal for the 2026–27 sugar season. About Fair and Remunerative Price The Fair and Remunerative Price is the minimum statutory price that sugar mills must pay to sugarcane farmers, ensuring fair and assured remuneration. It was introduced in 2009 replacing the earlier Statutory Minimum Price (SMP) and is governed under the Essential Commodities Act, 1955. The FRP is recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs (CCEA). It aims to ensure income security for farmers, protect them from market fluctuations, and maintain stability in sugar production and supply. The FRP is determined based on cost of production (A2+FL), sugar recovery rate, demand-supply conditions, and a reasonable profit margin for farmers. It is announced annually before the sugar season (October–September) to guide procurement and pricing decisions.
