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Informist, Tuesday, May 5, 2026

 

--Govt: Fair price for sugarcane for 2026-27 season to be INR 365/100 kg 
--Cabinet OKs INR 1 tln for fair price for sugarcane for 2026-27 season 

 

NEW DELHI – The Union Cabinet on Tuesday approved a hike of INR 10 in the fair remunerative price of sugarcane for the 2026-27 season starting October. Sugar mills will have to pay INR 365 per 100 kilograms to farmers for sugarcane purchases. The revised prices are expected to encourage farmers to cultivate sugarcane in the upcoming kharif season, ensuring a surplus of cane for ethanol production, an official release said.

 

The revised fair prices for cane are for a basic recovery rate of 10.25%. Mills also have to pay a premium of INR 3.56 per 100 kg for every 0.1% increase in recovery above 10.25%, as an incentive to farmers for selling canes with higher sugar recovery. The sugar recovery rate is the percentage of sugar extracted from sugarcane while processing. 

 

Last year, the Centre hiked the fair and remunerative price of sugarcane by INR 15 per 100 kg to INR 355. 

 

With the latest hike, about 100 million farmers are expected to receive about INR 1 trillion as fair prices of sugarcane in the next sugar season, the release said. The revised fair remunerative price of sugarcane are 200.5% of the all-India weighted cost of production. 

 

In addition to farmers, the sugar sector supports the livelihoods of 500,000 workers directly employed in sugar mills and ancillary activities. End 

 

Reported by Afra Abubacker

Edited by Saji George Titus

 

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