Basics · 1 Nov 2026
A glossary of sugar-industry terms: recovery %, FRP, bagasse, molasses
Recovery % is sugar made as a share of cane crushed, and FRP is the central minimum cane price, adjusted for that recovery. Bagasse is the fibre left after milling, and molasses is the liquor left after the final stage of sugar recovery.
How to use this glossary
Terms are grouped by where you meet them. Legal definitions can differ between the central Order and state Acts, so use the text that applies to your mill when a dispute is possible. Rates are given for the 2026-27 season only.
Price and payment terms
| Term | Meaning |
|---|---|
| FRP | Fair and Remunerative Price. The price fixed by the Centre under clause 3 of the Sugarcane (Control) Order. It replaced the Statutory Minimum Price from 22 October 2009. |
| Basic recovery | The recovery level at which FRP is stated. It is 10.25% for 2026-27, at Rs 365 per quintal. |
| Premium | The added price for recovery above basic. It is Rs 3.56 per quintal for each 0.1% in 2026-27, with the same reduction below basic. |
| SAP | State Advised Price. A price fixed by a state, higher than the central price. Uttar Pradesh and Haryana use it. |
| Revenue sharing | A cane price tied to mill revenue. Tamil Nadu's 2018 Act uses the higher of 70% of sugar and primary by-product value or 75% of sugar value. Its full FRP comes first. |
| Rebate | A reduction in price allowed under clause 3A, such as for stale or burnt cane. |
| H&T | Harvesting and transport. In Maharashtra, factories arrange it for growers and deduct the cost from FRP. |
| Cane dues or arrears | Cane price owed to growers. Payment is due within 14 days of delivery, and clause 3(3A) sets 15% a year on delay. |
Cane and area terms
| Term | Meaning |
|---|---|
| Reserved area | An area where cane is grown and reserved for a factory under clause 6(1)(a) of the Order. |
| Assigned area | In Uttar Pradesh, an area assigned to a factory under section 15 of the 1953 Act. |
| Free will area | In Tamil Nadu's Act, an area outside the reserved area. |
| Ratoon | The crop that grows from the stubble after a harvest. A plant crop is grown from fresh setts. |
| Requisition slip | The slip that lets a grower deliver cane. The Uttar Pradesh 1954 Order requires it for reserved and assigned areas, unless the Cane Commissioner permits otherwise. |
| Trash | Leaves, tops, roots and other matter delivered with cane. |
| Gate cane and centre cane | Cane delivered at the factory gate, or at a purchasing centre from which it is moved to the mill. |
Season and time terms
| Term | Meaning |
|---|---|
| Sugar season or sugar year | 1 October to 30 September. FRP and cane dues are stated by this period. |
| Crushing season | The months a mill actually crushes. The Bombay High Court described it as normally starting in October and ending between April and June. |
| Fortnight | The period commonly used for cane returns. Clause 9(aa) refers to returns within seven days of its close. |
Recovery and process terms
| Term | Meaning |
|---|---|
| Recovery % | Sugar produced as a percentage of cane crushed. |
| RT-8C | The return in which a factory's actual recovery is certified after the season, as described in the Maharashtra record before the Bombay High Court. |
| Ethanol equivalent | For ethanol made directly from juice or B-heavy molasses, 600 litres count as 1 tonne of sugar when recovery is worked out, under the explanation to clause 3(1). |
| TCD | Tonnes of cane crushed per day. It is the usual measure of mill capacity. |
| Khandsari sugar | Sugar made by the open pan process. A factory under the Order uses the vacuum pan process. |
By-product terms
| Term | Meaning | Approximate yield |
|---|---|---|
| Bagasse | The final fibrous residue from the milling train. Wet bagasse holds 48% to 52% moisture. | About 30% of cane |
| Molasses | The mother liquor left after sugar recovery in the final vacuum pan stage. | About 4.2% of cane |
| C-heavy molasses | Final molasses, with very little sugar left in it. | Not stated |
| B-heavy molasses | Molasses drawn at an earlier stage, which holds more sugar than C-heavy. It can feed ethanol under the Order. | Not stated |
| Press mud | The solid filter residue from juice clarification, used on soil and for biogas. | 3% to 4% by weight |
Terms that cause disputes
Yields vary by mill and cane quality, so treat them as rough guides. Confirm legal meanings with your accountant or the current notification. SugarOS stores FRP, SAP and revenue sharing as dated, approved rules, and the mill enters the rates.
- FRP and net FRP: check whether H&T has been taken off before comparing two figures.
- Recovery: check which season, and whether ethanol diversion has been counted.
- Quintal and tonne: FRP of Rs 365 per quintal is Rs 3,650 per tonne.
- Sugar year and financial year: one runs from October, the other from April.
Frequently asked questions
What is the difference between FRP and SAP?
FRP is fixed by the Centre and is the floor. SAP is fixed by a state and must be higher. The Supreme Court confirmed this position in 2020.
Why is recovery shown to two decimals?
Because the premium moves in steps of 0.1%. In 2026-27 each step is worth Rs 3.56 per quintal, so small differences add up across a season's cane.
Is bagasse a waste product?
No. The Order lists bagasse with molasses and press mud as by-products considered in fixing FRP, and it is widely used as boiler fuel.
Does the sugar year match the financial year?
No. The sugar year starts on 1 October and the financial year on 1 April, so one season falls across two financial years.
Sources
- Sugarcane (Control) Order, 1966, consolidated text (Tripura High Court copy)
- Sugarcane (Control) Order, 1966, consolidated text with amendment notes (AISTA copy)
- PIB: Cabinet approves FRP of Rs 365/qtl for season 2026-27 (5 May 2026)
- Supreme Court, West UP Sugar Mills Association v State of UP, 22 April 2020
- Bombay High Court, Raju Shetti v State of Maharashtra, WP 5736 of 2022, judgment of 17 March 2025
- Tamil Nadu Sugarcane (Regulation of Purchase Price) Act, 2018
- Uttar Pradesh Sugarcane Supply and Purchase Order, 1954 (LegitQuest copy)
- NITI Aayog: Report of the Task Force on Sugarcane and Sugar Industry (March 2020)
- FAO: Integration of Sugarcane and Milk Production in Western India
- Down To Earth: Pressmud and compressed biogas (28 November 2023)
- India Code: UP Sugarcane (Regulation of Supply and Purchase) Act, 1953
- Bajaj Hindusthan Sugar: By-products of sugar manufacturing
- The Tribune: Govt raises procurement price of C-heavy molasses ethanol (29 January 2025)