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UP Sugar Sector Posts Major Payment Milestone, 99 Mills Fully Settle Farmer Dues

Uttar Pradesh has cleared more than 94% of sugarcane dues in the ongoing crushing season, while 99 mills have paid farmers in full.
Indian Masterminds Stories

Lucknow: Uttar Pradesh has cleared more than 94% of sugarcane dues to farmers in the current crushing season, with 99 sugar mills completing 100% of their payments, according to figures cited from the state government.

The latest figures come as Uttar Pradesh continues to expand sugarcane production, improve productivity and strengthen the processing capacity of its sugar industry.

₹3.25 Lakh Crore Paid to Sugarcane Farmers

The Uttar Pradesh government said a record ₹3.25 lakh crore has been transferred directly to sugarcane farmers’ bank accounts so far.

Read Also: UP Govt Approves 25 Lakh Free Tablets for Youth Under Swami Vivekananda Youth Empowerment Scheme

Key payment and income figures include:

  • More than 94% of current-season sugarcane dues have been cleared.
  • 99 sugar mills have completed 100% payment of their dues.
  • Cumulative sugarcane payments by the state have reached ₹3.25 lakh crore.
  • Average sugarcane farmer income has increased by ₹40,720 per hectare, according to the state government’s figures.

Sugarcane Output Rises Over Nine Years

Data from the Uttar Pradesh Cane Development Department shows a substantial increase in sugarcane production over the period under review.

Sugarcane production rose from 1,486.57 lakh tonnes in 2016-17 to 2,362 lakh tonnes in 2025-26. Sugar production also increased from 87.73 lakh tonnes to 89.52 lakh tonnes during the same period.

The state’s sugar mills collectively crushed 9,220 lakh tonnes of sugarcane and produced 968.58 lakh tonnes of sugar over the nine-year period cited in the statement.

Productivity and Recovery Also Improve

The state has reported gains in both sugarcane productivity and sugar recovery:

  • Average productivity increased from 72.38 tonnes per hectare to 82.56 tonnes per hectare.
  • This represents an increase of 10.18 tonnes per hectare.
  • Average sugar recovery improved from 10.61% to 10.83%.

Sugar Industry Capacity Expanded

The state government has also highlighted measures aimed at increasing processing capacity and reviving sugar mills.

According to the figures:

  • 4 new sugar mills have been established.
  • 7 closed mills have been revived.
  • Crushing capacity of 44 mills has been expanded.
  • These measures have added 1,28,500 tonnes of cane crushing capacity per day (TCD).

285 New Khandsari Units Established

The state has also expanded its khandsari industry through an online licensing system and other policy measures.

As per the government’s figures, 285 new khandsari units have been established, generating direct and indirect employment for around 41,900 people.

Uttar Pradesh’s Sugar Industry and Cane Development Department said the state continues to rank first nationally in sugarcane, molasses and ethanol production.

The latest payment figures come against the backdrop of Uttar Pradesh’s State Advised Price system, under which sugar mills are responsible for cane payments at the state-advised price.

Read Also: UP: Sugarcane Department Signs MoU with Wadhwani Foundation to Train 15,000+ Students in Job-Oriented Skills


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