Cabinet Hikes Sugarcane FRP and approves Cotton Mission

NEW DELHI – In a dual boost for the agrarian economy, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved a hike in sugarcane prices and a multi-billion rupee mission to revitalize India’s cotton sector.

Sweetener for Sugarcane Farmers

The government has increased the Fair and Remunerative Price (FRP) of sugarcane for the 2026-27 sugar season (October–September) by ₹10 per quintal.

• New Rate: ₹365 per quintal (up from ₹355) for a basic recovery rate of 10.25%.
• Safety Net: To protect farmers in regions with lower yields, the Cabinet ruled that there will be no price deductions for mills where sugar recovery falls below 9.5%. These farmers are guaranteed a minimum of ₹338.3 per quintal.
• Economic Impact: The decision is expected to benefit nearly 5 crore farmers and 5 lakh workers in the sugar industry. With production costs estimated at ₹182 per quintal, the new FRP provides a margin of over 100%.

Reviving the “White Gold”: Mission for Cotton Productivity

Addressing long-standing bottlenecks in the textile supply chain, the Cabinet approved ₹5,659.22 crore for the “Mission for Cotton Productivity” spanning from 2026-27 to 2030-31.

Key Objectives of the Mission:

• Yield Targets: Aims to increase lint productivity from the current 440 kg/ha to 755 kg/ha by 2031.
• Production Goal: Targeting an output of 498 lakh bales (170 kg each) to ensure global competitiveness.
• Technology & Innovation: Focuses on high-yielding, climate-resilient seeds, High-Density Planting Systems (HDPS), and the modernization of 2,000 ginning factories.
• Scope: Initially covering 140 districts across 14 states, the mission is expected to empower 32 lakh farmers.

A Strategic Vision

The Cotton Mission aligns with the government’s “5F” vision—Farm to Fibre to Factory to Fashion to Foreign. Beyond productivity, it seeks to strengthen the “Kasturi Cotton Bharat” brand, ensuring traceability and quality benchmarks that meet international standards.

By simultaneously stabilizing sugarcane incomes and modernizing cotton farming, the Union Cabinet aims to fortify rural liquidity and secure India’s position as a global leader in agro-exports.