Sugarcane is not sold at a mandi rate. The Fair and Remunerative Price is announced by the central government against a base recovery rate, and mills pay more when their recovery is higher than the base. Some states also announce their own higher price. Your payment therefore depends on tonnage, the mill's recovery, and how quickly the mill pays.
Live mandi rates for Sugarcane in markets across India are updated every morning. Check today's rate →
FRP is linked to recovery, not just weight
The announced FRP applies at a specified base recovery percentage. If the mill recovers more sugar per tonne than that base, the price per tonne rises accordingly. This is why two farmers delivering the same tonnage to different mills can receive different totals.
State prices can sit above FRP
Some states announce their own advised price above the central FRP. Where that exists, it is what mills in that state pay. Knowing which applies to you matters, because comparing your payment against the wrong number leads to arguments that go nowhere.
Cutting and transport come out of your side
Harvesting and transport charges are typically deducted before payment reaches you. Two mills quoting the same price can net out differently once those deductions are counted. Ask for the deduction structure in writing before committing your crop for the season.
Payment delay is a real cost
Cane payment is legally supposed to arrive within a set period of delivery, and in practice delays are common in difficult years. A delayed payment is a smaller payment in real terms. The mill's payment record is worth as much attention as its recovery rate.
| Element | Who sets it | Effect |
|---|---|---|
| FRP | Central government | The base price per tonne |
| State advised price | State government, where it exists | Can be higher than FRP |
| Mill recovery rate | The mill | Higher recovery, higher price |
| Harvesting charge | Mill or contractor | Deducted from your payment |
| Transport charge | Mill or contractor | Deducted from your payment |
| Payment delay | The mill | Reduces real value |
Frequently asked questions
- Why did my neighbour get more per tonne from a different mill?
- Most often because that mill has a higher recovery rate, or because its harvesting and transport deductions are lower.
- What can I do about a delayed payment?
- Payment timelines are set in law and state cane authorities handle complaints. Keep your delivery slips, as they are the evidence.
