The BJP government announced a significant increase in sugarcane prices on Wednesday, seen as a pre-election boost for farmers in the state. Cane prices were raised by Rs 30 per quintal in a cabinet decision for the 2025-26 season. The State Advised Price (SAP) for the early variety of cane will now be Rs 400 per quintal, and the normal variety will be Rs 390 per quintal.
The last increase in cane prices was during the 2023-24 season, with a Rs 20 per quintal hike. There was no increase in the 2024-25 season, and the current Rs 30 per quintal hike, coinciding with the start of the sugar mills’ crushing season, is seen as a substantial Diwali gift for farmers.
BJP cadres quickly welcomed the decision. Sugarcane Development and Sugar Industry Minister Laxmi Narain Chowdhry stated, “Sugarcane farmers are the backbone of our state’s economy. We are committed to providing them a remunerative price and ensuring quick payments. The price increase will lead to an additional payment of nearly Rs 3,000 crore to farmers.” He added that arrangements have been made to ensure transparent sugar cane purchases and prompt payments to farmers.
Jayant Chaudhary, the chief of Rashtriya Lok Dal, an alliance partner of the BJP and Union Minister, also welcomed the decision, noting that it respected the farmers’ hard work. RLD has a strong base among farmers, particularly the Jat community, which is known for large-scale sugarcane farming. Most sugar mills are located in western UP, where RLD holds significant political influence.
With elections due in early 2027, the timely announcement of the SAP hike is perceived as an effort to keep the farming community content.
Sugarcane is one of the state’s largest cash crops, and the SAP provides price protection to farmers, leading to direct payments that boost their income and the local economy.
The Yogi Adityanath government claimed that a record Rs 2.90 lakh crore has been paid to cane farmers since its tenure began in 2017. This is nearly Rs 1.42 lakh crore more than the Rs 1.47 lakh crore paid during the SP and BSP governments from 2007 to 2017, according to a government official.
Laxmi Narain Chowdhry mentioned, “The state currently has 122 operational sugar mills, ranking second in the country. The Yogi government has attracted Rs 12,000 crore in fresh investments in the sugar industry. Over the past eight years, four new sugar mills have been established, six closed mills revived, and 42 mills have expanded their crushing capacity. Ethanol, a byproduct of the sugarcane industry, has also become a significant revenue earner, with production rising from 410 million litres to 1,820 million litres. Sugarcane cultivation has increased due to favourable government policies, with acreage expanding from 2 million hectares to 2.951 million hectares. Uttar Pradesh is now the top state in the country for both sugarcane cultivation and ethanol output.”
