India's Sugar Sector
Policy Architecture and Fair and Remunerative Price (FRP)
India's sugar sector is one of the most heavily regulated in the world, reflecting the political salience of sugarcane farmers (approximately 5 crore farmers are engaged in sugarcane cultivation). The central government fixes the Fair and Remunerative Price (FRP) — the minimum price sugar mills must pay to farmers for cane. FRP is fixed by the CCEA on the recommendation of the Commission for Agricultural Costs and Prices (CACP), and is notified under the Sugarcane (Control) Order. Many states supplement FRP with a higher State Advised Price (SAP).
- FRP (Fair and Remunerative Price): statutory minimum price for sugarcane; determined by CCEA on CACP recommendation
- SAP (State Advised Price): state-level minimum, often higher than FRP; UP, Punjab, Uttarakhand regularly set SAP
- Sugar (Control) Order, 2025: updated regulatory framework replacing the 1966 Order; introduces provisions for Khandsari units and minimum inter-mill distance of 15 km
- Sugar season: October to September (not calendar year)
- ISMA: Indian Sugar and Bio-energy Manufacturers Association — key industry body for production data
- India is the world's largest producer and consumer of sugar
● Tracked since February 18, 2026 · last seen May 13, 2026 · updates as the daily brief publishes
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