Yogi govt hikes sugarcane prices by Rs 30 per quintal, highest in 8 years

The Yogi Adityanath government in Uttar Pradesh on Wednesday announced a Rs 30 per quintal increase in sugarcane prices for the 2025-26 crushing season, terming it a major pro-farmer decision that will benefit lakhs of cultivators across the state.

With the latest revision, the price of the early variety of sugarcane has been fixed at Rs 400 per quintal and the common variety at Rs 390 per quintal, Sugarcane Development and Sugar Industry Minister Laxmi Narayan Chaudhary said. “The increase will result in an additional payment of around Rs 3,000 crore to farmers,” he said during a press conference here.

This marks the fourth time during this government’s tenure that the state advisory price for sugarcane has been raised. Officials said the decision is expected to boost farmers’ income and inject fresh momentum into the state’s rural economy.
“The government considers it its top priority to honour the hard work of farmers. Sugarcane growers are not just producers but strong pillars of the state’s economy,” Chaudhary said, adding that ensuring timely and fair payment for their produce remains the government’s firm commitment.

According to the minister, sugarcane farmers have so far received payments worth Rs 2,90,225 crore during the current administration. By comparison, a total of Rs 1,47,346 crore was paid between 2007 and 2017 during the previous Samajwadi Party and Bahujan Samaj Party governments.

“The current government has therefore made Rs 1,42,879 crore more payments in just eight and a half years,” he claimed.
Chaudhary further said Uttar Pradesh currently has 122 operational sugar mills, placing it second in the country in sugar production.

While 21 mills were sold off cheaply during previous regimes, the state’s transparent management and investor-friendly policies have attracted over Rs 12,000 crore in new investment in the sector, he claimed. The minister said that in the past eight years, four new mills have been established, six closed mills have been reopened, and 42 mills have expanded their crushing capacity, equivalent to the addition of eight large mills.

Two sugar mills have also installed compressed biogas (CBG) plants, strengthening the alternative energy base in the sugarcane sector. Under the state’s “Smart Ganna Kisan” initiative, the entire process of area registration, scheduling, and the issuance of supply slips has been made online, he said.

Farmers now receive their supply slips directly on mobile phones, and payments are transferred to their bank accounts through Direct Benefit Transfer (DBT). The central government has recognised the system as a model initiative, the minister said.

Highlighting the ethanol sector’s growth, Chaudhary said production in Uttar Pradesh has increased from 41 crore litres to 182 crore litres, while the number of distilleries has gone up from 61 to 97.

The sugarcane acreage in the state has also expanded from 20 lakh hectares to 29.51 lakh hectares, making Uttar Pradesh the leading state in the country in sugarcane cultivation, he added.