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Uttar Pradesh Government Hikes Sugarcane Price to ₹400 per Quintal, Benefiting 4.5 Million Farmers

Written by: Team Angel OneUpdated on: 29 Oct 2025, 8:26 pm IST
Uttar Pradesh govt raises sugarcane price by ₹30 to ₹400 per quintal for early-maturing varieties, benefiting 4.5 million farmers and adding ₹3,000 crore to rural income.
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The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has approved a ₹30 increase in the state advised price (SAP) of sugarcane for the 2024-26 season. This revision raises the SAP for early-maturing sugarcane varieties to ₹400 per quintal, marking an over 8% hike. 

The decision is expected to benefit nearly 4.5 million farmers across the state and boost their collective income by around ₹3,000 crore in the current 2025-26 crushing season.

UP Government’s Latest Sugarcane Price Revision

Announcing the decision in Lucknow on October 29, 2025, Sugarcane Development Minister Laxmi Narayan Chaudhary said that the move reflects the state’s commitment to ensuring fair and timely payments to farmers. 

The SAP for normal varieties has been raised from ₹360 to ₹390 per quintal, providing additional relief amid rising cultivation costs. This is the 4th sugarcane price hike implemented under the Yogi Adityanath government since 2017.

Impact on Farmers and Rural Economy

Sugarcane, alongside paddy and wheat, remains a key cash crop in Uttar Pradesh. The state’s 122 operational sugar mills, second only to Maharashtra, directly engage millions of farming households. 

Since 2017, the government has disbursed over ₹2.9 trillion in payments to cane farmers, ₹1.42 trillion more than the combined total during the previous SP and BSP regimes between 2007 and 2017. The minister highlighted that the increase in SAP would further strengthen the state’s rural economy and enhance farmer prosperity.

Read More:GEMA Calls for Accelerated Ethanol Blending and Flex-Fuel Vehicle Adoption!

Industrial Growth and Ethanol Expansion

Under Yogi Adityanath’s leadership, the state has seen ₹12,000 crore in new investments in the sugar industry. Four new sugar mills have been established, six previously closed mills revived, and 42 have expanded their crushing capacity — equivalent to adding eight new large mills. 

The government has also prioritised sustainability, setting up compressed biogas plants in two mills and advancing ethanol production from 410 million litres to 1,820 million litres. The number of distilleries has increased from 61 to 97, while sugarcane acreage has grown from 2 million hectares to 2.951 million hectares.

Digital and Structural Reforms

Through the ‘Smart Sugarcane Farmer’ system, the state has digitised all key farming processes, including acreage registration, calendaring, and slip issuance, eliminating middlemen. These reforms have improved transparency and efficiency in farmer payments and operations across the sector.

Conclusion

The Uttar Pradesh government’s decision to raise the sugarcane SAP to ₹400 per quintal reinforces its commitment to strengthening the state’s agricultural backbone. With this policy change, enhanced ethanol capacity, and ongoing digital reforms, UP continues to cement its leadership as India’s top state in sugarcane cultivation and biofuel production.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 29, 2025, 2:55 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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