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A “historic” move by the UP government has stirred excitement among farmers and industry watchers alike. What’s driving this sudden sweet turn in the state’s rural economy?
UP govt increases sugarcane prices.
Lucknow: In a major boost to sugarcane farmers, the Uttar Pradesh government on Tuesday announced a hike of Rs 30 per quintal in the State Advisory Price (SAP) of sugarcane for the 2025–26 crushing season. The decision, described as “historic” by the state’s Sugarcane Development and Sugar Industry Minister Laxmi Narayan Chaudhary, is expected to benefit millions of farmers across the state.
With this revision, the SAP for the early variety of sugarcane now stands at Rs 400 per quintal, while the normal variety will fetch Rs 390 per quintal. Officials said the increase would translate to an additional payment of around Rs 3,000 crore to farmers this season.
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‘Historic step for farmers’
Calling the move a reflection of the government’s commitment to the rural economy, Minister Laxmi Narayan Chaudhary said, “This is a historic decision under the leadership of Chief Minister Yogi Adityanath. The government has respected the hard work of sugarcane farmers and ensured that their produce gets its rightful value.”
He added that the sugarcane sector in Uttar Pradesh has witnessed remarkable growth in the past few years, both in production and allied industries. “The sugarcane area in the state has increased from 2 million hectares to nearly 2.95 million hectares,” he said.
उत्तर प्रदेश सरकार नें गन्ने की मिठास और किसानों की मेहनत का मान रखा!
मुख्यमंत्री जी को आभार! #SAP #Sugarcane
— Jayant Singh (@jayantrld) October 29, 2025
Union Minister Jayant Chaudhary also lauded the decision, saying, “The UP government respected the sweetness of sugarcane and the hard work of farmers.” He noted that the last major increase in sugarcane prices was in 2017, when the rate went up by Rs 85 per quintal.
Digital reforms bring transparency
Highlighting reforms in the sector, the minister said the ‘Smart Sugarcane Farmer System’ introduced by the state has been recognised by the Government of India as a “model initiative.”
Through this online system, processes such as sugarcane acreage, calendaring, and slip issuance have been fully digitised eliminating middlemen and ensuring direct payment to farmers.
“The digital transformation has brought unprecedented transparency. Farmers now receive their dues directly into their accounts without any interference,” Chaudhary said.
Record ethanol production and new investments
The minister further pointed out the state’s achievements in ethanol production and industrial growth. Ethanol output in Uttar Pradesh has risen sharply from 410 million litres to 1,820 million litres, while the number of distilleries has grown from 61 to 97.
Currently, the state has 122 operational sugar mills the second-highest in the country after Maharashtra though UP mills are larger in capacity.
“In the past eight years, four new sugar mills have been established, six have been revived, and 42 mills have seen their capacity expanded,” the minister said, adding that transparent policies have attracted investments worth ₹12,000 crore into the sugar and allied industries.
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Timely payments, stronger economy
Chaudhary stated that 94% of sugarcane payments for the current season have already been made to farmers. He also compared the government’s performance with the previous decade, claiming that between 2007 and 2017, sugarcane farmers received Rs 1.47 lakh crore in payments, whereas the current government has ensured Rs 2.90 lakh crore in the past 8.5 years-nearly double.
“Sugarcane farmers are not just cultivators but the strong pillars of our rural economy,” he said. “Our government’s top priority is to respect their labour and ensure fair, timely payments.”
As Uttar Pradesh continues to strengthen its position as India’s leading sugarcane-producing state, the government hopes the new price hike and digital reforms will boost farmer incomes and further modernize the sugar industry.
