Lucknow: In a major pro-farmer initiative, the Uttar Pradesh government has announced a ₹30 per quintal increase in sugarcane prices for the 2025–26 crushing season. The revised rates are ₹400 per quintal for early varieties and ₹390 per quintal for normal varieties, providing an additional income of around ₹3,000 crore to sugarcane farmers, said Sugarcane Development Minister Laxmi Narayan Chaudhary.
This marks the fourth sugarcane price hike under Chief Minister Yogi Adityanath’s tenure, aimed at strengthening farmers’ livelihoods and energizing the rural economy.
Sugarcane Farmers: Backbone of UP’s Economy
Minister Chaudhary emphasized the importance of sugarcane farmers, stating,
“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.”
Highlighting the government’s track record, he noted that a record ₹2.90 lakh crore has been paid to sugarcane farmers so far—₹1.42 lakh crore more than the total paid during previous SP and BSP regimes between 2007 and 2017.
Expansion and Investment in Sugar Industry
Uttar Pradesh currently has 122 operational sugar mills, ranking second nationally. The Yogi government’s transparent and investor-friendly policies have attracted ₹12,000 crore in fresh investments in the sector. Over the last eight years:
- Four new sugar mills have been established
- Six closed mills have been revived
- 42 mills have expanded crushing capacity, equivalent to eight new large mills
- CBG plants set up in two sugar mills for alternative energy production
Smart Sugarcane Farmer System Eliminates Middlemen
Under the “Smart Sugarcane Farmer” system, all processes including acreage registration, calendaring, and slip issuance are fully digitized. Farmers now receive sugarcane slips directly on their mobile phones, and payments are transferred straight to their bank accounts via Direct Benefit Transfer (DBT).
This initiative, recognized by the Government of India as a model system, has completely eliminated intermediaries, ensuring transparency and timely payments.
UP Leads the Nation in Ethanol and Sugarcane Production
The government’s efforts have significantly boosted ethanol production, which has risen from 410 million liters to 1,820 million liters, with the number of distilleries increasing from 61 to 97. Sugarcane acreage has expanded from 2 million hectares to 2.951 million hectares, making Uttar Pradesh the top state in India for both sugarcane cultivation and ethanol output.
Impact on Farmers and Economy
The new price hike, along with the digitized payment system, is expected to:
- Provide an additional ₹3,000 crore income to sugarcane farmers
- Strengthen UP’s rural economy and sugar industry
- Encourage investment in sugar mills and ethanol production
- Ensure transparent, timely payments to farmers
The Yogi government’s policies continue to emphasize pro-farmer reforms, industry growth, and sustainable agriculture.
