In a major decision ahead of the 2027 Uttar Pradesh Assembly elections, the BJP-led state government has approved a ₹30 per quintal increase in sugarcane prices for the 2025–26 crushing season. The State Advised Price (SAP) for the early variety of sugarcane has been set at ₹400 per quintal, while the normal variety will fetch ₹390 per quintal.
The last price revision occurred during the 2023–24 season with a ₹20 per quintal hike, while there was no change in 2024–25. The latest increase coincides with the start of the crushing season and is widely viewed as a festive Diwali bonus for farmers.
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Government Claims Record Payments to Farmers
Welcoming the decision, Sugarcane Development and Sugar Industry Minister Laxmi Narain Chowdhry said, “Sugarcane farmers are the backbone of our state’s economy. This increase will result in an additional ₹3,000 crore being paid to farmers.”
He added that measures have been implemented to ensure transparent cane procurement and timely payments.
Since 2017, the Yogi Adityanath government claims to have paid a record ₹2.90 lakh crore to sugarcane farmers — nearly double the ₹1.47 lakh crore disbursed during the previous SP and BSP governments (2007–2017).
RLD, BJP Alliance Welcomes the Move
Union Minister and RLD chief Jayant Chaudhary praised the decision, calling it a “tribute to the farmers’ hard work.” The RLD, known for its strong farmer base in western Uttar Pradesh, particularly among the Jat community, is expected to benefit from the move politically.
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Industrial Growth and Ethanol Expansion
The state currently has 122 operational sugar mills, ranking second in India. The government said that ₹12,000 crore in fresh investments has been attracted to the sugar industry. Since 2017, four new mills have been set up, six closed units revived, and 42 mills expanded.
Ethanol production — a major byproduct of sugarcane — has surged from 410 million litres to 1,820 million litres, making it a key revenue contributor. Sugarcane acreage in UP has expanded from 2 million hectares to nearly 3 million hectares, strengthening the state’s top position in both sugarcane production and ethanol output.
