Good News for Farmers: Sugarcane Prices Likely to Rise in Uttar Pradesh Soon

Key Highlights

• Uttar Pradesh may increase sugarcane prices in January's cabinet meeting.
• Farmers demand raising the SAP to ₹500 per quintal.
• Current sugarcane SAP in UP is ₹370 per quintal for early variety.
• Punjab offers the highest SAP at ₹401 per quintal.
• Decision aims to boost farmer income and sugar production in mills.

In a move that could bring relief and joy to sugarcane farmers in Uttar Pradesh, the state government is considering increasing sugarcane's State Advisory Price (SAP). According to sources, the announcement could be made during a cabinet meeting scheduled in the second week of January. If implemented, this increase will benefit thousands of sugarcane farmers across the state, encouraging them to expand sugarcane cultivation and boosting sugar production in mills.

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Cabinet Meeting May Bring Price Hike

The Sugarcane Minister of Uttar Pradesh, Laxminarayan Chaudhary, has indicated that the government is reviewing recommendations from the Sugarcane Research Center and other experts. The decision to raise sugarcane prices will likely be finalized between January 10 and January 15. While the exact hike amount is yet to be disclosed, it is expected to provide significant financial benefits to farmers.

Previously, in January 2024, the government increased the SAP of sugarcane by ₹20 per quintal, taking the price of early variety sugarcane to ₹370 per quintal. This followed earlier hikes of ₹10 in 2017 and ₹25 in 2021 during Chief Minister Yogi Adityanath's tenure.

Current Sugarcane Prices and Farmer Demands

At present, sugarcane prices in Uttar Pradesh are:

• Early variety: ₹370 per quintal
• Normal variety: ₹360 per quintal
• Unfit variety: ₹355 per quintal

Farmers organizations have demanded a significant increase in prices, asking the government to set the SAP at ₹500 per quintal. They cite rising inflation and higher production costs and argue that current rates do not provide fair compensation for their efforts.

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How Does Uttar Pradesh Compare to Other States?

Despite being the largest producer of sugarcane in India and home to 120 sugar mills, Uttar Pradesh has one of the lowest SAP rates compared to other states:

• Punjab: ₹401 per quintal
• Haryana: ₹400 per quintal
• Uttarakhand: ₹375 per quintal
• Bihar: ₹365 per quintal

The central government’s Fair and Remunerative Price (FRP) for the 2024–25 season is ₹340 per quintal, but Uttar Pradesh farmers have long argued for higher rates, especially since states like Punjab and Haryana offer more competitive prices.

Also Read: State Governments Such as Punjab and Bihar Increase Sugarcane Prices: Farmers to Benefit

Why Increasing the SAP Matters

A higher SAP will ensure better earnings for sugarcane farmers and encourage them to grow more, ultimately benefiting the sugar industry. Currently, 70 of the 120 sugar mills in Uttar Pradesh are operational, and sugarcane is actively purchased from farmers. With improved prices, more farmers may supply their produce to these mills, boosting production and the local economy.

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CMV360 Says

Farmers in Uttar Pradesh are eagerly waiting for the government's decision, which could bring them a much-needed boost. The potential increase in sugarcane prices would not only improve their livelihoods but also enhance the state's standing in the sugar industry. If the government acts promptly, the announcement could become a New Year gift for farmers, marking a positive start to 2025.