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UP government to clear sugarcane farmer’s dues soon, boost mill capacity, and ensure timely payments for economic growth.
Key Highlights
88% of sugarcane farmer's payments have been made; the rest will be cleared soon.
Chhata and Mathura sugar mills restarted to reduce transport costs.
Sugar mill capacity increasing from 2000 TDS to 3000 TDS, expandable to 4900 TDS.
Rs 2.80 lakh crore paid to farmers in 8 years, a record amount.
Current sugarcane rates in UP: Early variety Rs 370, normal Rs 360, unfit Rs 355 per quintal.
There is good news for sugarcane farmers in Uttar Pradesh. The state government has announced that pending payments will be cleared soon. Chief Minister Yogi Adityanath stated that 88% of the payments for sugarcane farmers have already been made, and the remaining dues will be paid shortly. His government has taken several important steps to support sugarcane farmers, leading to increased production and economic growth in the state.
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The state government has restarted sugar mills in Chhata and Mathura, which had been closed since 2009. This move ensures that farmers can sell their sugarcane locally, reducing transportation costs and increasing their earnings. Farmers have welcomed this initiative. Additionally, the government has initiated an e-tendering process for the Pipraich distillery. Once completed, construction work will commence soon. In the 2025-26 budget, the government announced plans to set up a 300 TDC capacity sugar mill in Chhata and Mathura, along with a 120 KPLD ethanol distillery in Pipraich, Gorakhpur.
The state is increasing the capacity of sugar mills from 2000 TDS to 3000 TDS, with provisions to expand up to 4900 TDS. This is a significant step for sugarcane farmers in the region. The government has also allocated Rs 90 crore for an ethanol distillery at the Pipraich sugar mill in Gorakhpur. The tendering process for this 120 KPLD capacity distillery is in its final stages, and construction will start next month.
The Yogi government has made record payments of Rs 2.80 lakh crore to sugarcane farmers in the last eight years. This is in contrast to previous governments, which had paid only Rs 66,703 crore over 22 years (1995-2017). This year, the government allocated Rs 475 crore for sugarcane farmers, with 88% of the amount already disbursed. The remaining payments will be completed soon.
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According to media reports, the government is working towards ensuring that all outstanding payments are made soon. Timely payments will strengthen farmer’s financial conditions and boost sugarcane production. The Chief Minister emphasized the economic contribution of sugarcane farmers, noting that sugarcane and related products contribute Rs 1.09 lakh crore to the state’s Gross Value Added (GVA).
Early variety: Rs 370 per quintal
Normal variety: Rs 360 per quintal
Unfit variety: Rs 355 per quintal
Farmers had demanded an increase to Rs 400 per quintal, but due to rising costs and low sugar recovery, sugar mills did not support the price hike. The state government accepted this reasoning, and no price increase was announced in the budget. Over the last eight years, the price of sugarcane in UP has risen by Rs 55 per quintal.
Punjab: Rs 401 per quintal
Haryana: Rs 400 per quintal
Uttarakhand: Rs 375 per quintal
Bihar: Rs 375 per quintal (Farmers receive Rs 365 from sugar mills; the state government pays Rs 10 extra.)
The central government has set the Fair and Remunerative Price (FRP) at Rs 340 per quintal for the 2024-25 crushing season. No state can buy sugarcane below this rate. However, all major sugarcane-producing states have set SAP rates higher than the FRP.
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The Uttar Pradesh government is making significant efforts to support sugarcane farmers by ensuring timely payments, increasing production capacity, and reviving closed sugar mills. These steps will improve the economic condition of farmers and boost sugarcane production, helping the state’s economy grow while addressing key challenges faced by farmers.