UP Govt Hikes Sugarcane Price By ₹30 Per Quintal For 2025–26 Season

Lucknow: In a major relief to farmers, the Uttar Pradesh government has announced a Rs 30 per quintal hike in sugarcane prices for the 2025–26 crushing season. The new rate has been fixed at Rs 400 per quintal for early varieties and Rs 390 per quintal for normal varieties, providing an additional benefit of around Rs 3,000 crore to sugarcane growers, Minister for Sugarcane Development and Sugar Industry Laxmi Narayan Chaudhary said on Tuesday.

This is the fourth sugarcane price hike under Chief Minister Yogi Adityanath’s tenure, aimed at boosting farmers’ income and strengthening the state’s rural economy.

“Sugarcane farmers are the backbone of Uttar Pradesh’s economy. It is our firm commitment to ensure they receive fair and timely payment for their produce,” Chaudhary said, adding that the government remains steadfast in honouring the hard work of farmers.

The minister pointed out that the Yogi administration has so far paid Rs 2,90,225 crore to sugarcane farmers—Rs 1,42,879 crore more than the Rs 1,47,346 crore disbursed during the SP and BSP regimes between 2007 and 2017. The move, he said, underscores the government’s resolve to empower farmers and drive growth in the state’s agrarian sector.

Uttar Pradesh currently has 122 operational sugar mills, ranking second in the country. Chaudhary said that while 21 mills were sold off at throwaway prices during previous governments, the Yogi administration’s transparent governance and investor-friendly policies have attracted Rs 12,000 crore in new investments. Over the past eight years, four new sugar mills have been established, six closed mills have been revived, and 42 mills have expanded their crushing capacity—equivalent to adding eight new large mills in terms of output.

The minister also highlighted the government’s “Smart Sugarcane Farmer” initiative, under which all processes—from acreage registration and calendaring to slip issuance—have been fully digitized. Farmers now receive their sugarcane slips on their mobile phones, and payments are transferred directly to their bank accounts through DBT, eliminating middlemen. The system has been recognized by the Government of India as a ‘model system’.

U.P. Sugar Mills Association Welcomes SAP Increase

U.P. Sugar Mills Association (UPSMA) appreciates the cane price hike as a step forward towards increasing the farmer income. “The Industry is committed to support our farmer and this reflects the Chief Minister’s commitment to farmers’ welfare,” spokesman said in a statement adding: “The Industry has been facing Revenue crunch due to non-revision of MSP fixed at Rs 3100 per Quintal since 2019 and on account of high quantum of levy and low realization of Levy Molasses Prices, along with no increase in Ethanol Prices for last three years. “

U.P. Sugar Mills Association reiterates to work jointly with the State Government for the prosperity of farmers, sustainable industry operations and advancement of Uttar Pradesh’s leadership in India’s sugar sector and towards 1 Trillion $ Economy of the State with the continuous support of State Government.