Fair and Remunerative Price (FRP)
Legal Basis and Mechanism
The FRP is the minimum price that sugar mills are legally required to pay farmers for sugarcane, irrespective of whether the mill makes a profit or loss. It is determined under the Sugarcane (Control) Order, 1966, which is issued under the Essential Commodities Act, 1955. Payment within 14 days of the delivery of cane is mandatory under this Order.
The concept of FRP replaced the earlier Statutory Minimum Price (SMP) through an amendment to the Sugarcane (Control) Order, 1966 on October 22, 2009. Unlike the SMP, the FRP is linked to a recovery-based formula, meaning the price varies with the sugar content (recovery rate) of the cane — incentivising farmers to grow higher-sugar-content varieties.
- FRP is fixed by CCEA on the recommendation of CACP (Commission for Agricultural Costs and Prices)
- Legal instrument: Sugarcane (Control) Order, 1966 under Essential Commodities Act, 1955
- SMP replaced by FRP from sugar season 2009-10 onwards
- Recovery rate: the percentage of sugar extracted from cane; national average is approximately 10–11%
- States can announce a State Advised Price (SAP) above the FRP — sugarcane farmers in Uttar Pradesh and Maharashtra typically receive SAP, which is higher than FRP
- FRP trend: ₹210/qtl (2013-14) → ₹315/qtl (2023-24) → ₹355/qtl (2025-26) → ₹365/qtl (2026-27)
● Tracked since May 05, 2026 · last seen August 23, 2026 · updates as the daily brief publishes