Chhattisgarh Raises Sugarcane Price to ₹425 per Quintal, Highest in India

Key highlights

• Sugarcane procurement price increased from ₹355 to ₹425 per quintal.

• Farmers will receive an additional ₹70 per quintal.

• Revised rate applies from the 2025-26 crushing season.

• ₹51.09 crore bonus announced for over 31,000 farmers.

• Chhattisgarh's rate exceeds the reported prices in Punjab, Haryana and Uttar Pradesh.

Chhattisgarh has announced a major financial boost for sugarcane farmers by increasing the sugarcane procurement price from ₹355 to ₹425 per quintal. The decision, taken by the state government led by Chief Minister Vishnu Dev Sai, will provide farmers with an additional ₹70 per quintal and is expected to improve their income.

With the revised rate, Chhattisgarh's sugarcane procurement price is higher than the rates reported for Punjab, Haryana and Uttar Pradesh. The government has also announced a bonus of ₹51.09 crore for more than 31,000 farmers associated with the state's four cooperative sugar mills.

The increased procurement price will apply from the 2025-26 crushing season, including farmers who have already sold their sugarcane to sugar mills during the season. The move aims to provide better returns to farmers, support agricultural families and make sugarcane cultivation more profitable.

Chhattisgarh Sugarcane Price Higher Than UP, Punjab and Haryana

The revised sugarcane price of ₹425 per quintal places Chhattisgarh ahead of several major sugarcane-producing states, according to the figures provided by the state government.

Here is how the new procurement rate compares with other states:

At the revised rate, Chhattisgarh farmers will receive ₹9 more per quintal than farmers in Punjab, ₹10 more than those in Haryana and ₹25 more than the reported rate for early-variety sugarcane in Uttar Pradesh.

The price increase is expected to improve returns for farmers and provide additional support to families dependent on sugarcane cultivation. However, actual earnings will also depend on production costs, crop yields and the terms under which payments are made.

In major sugarcane-producing states such as Maharashtra and Karnataka, payments are based on the Fair and Remunerative Price (FRP) announced by the Central Government. The FRP for the 2026-27 crushing season is ₹365 per quintal at a sugar recovery rate of 10.25%.

It is important to note that FRP and state-level procurement prices may not be directly comparable because payment conditions, sugar recovery levels and additional state government assistance can differ.

₹51.09 Crore Bonus for More Than 31,000 Farmers

Along with the procurement price increase, the Chhattisgarh government has announced a bonus of approximately ₹51.09 crore for more than 31,000 farmers associated with the state's four cooperative sugar mills.

Chief Minister Vishnu Dev Sai said the decision reflects the government's commitment to improving farmers financial condition and ensuring that they receive fair returns for their hard work.

The bonus is expected to provide additional financial support to sugarcane-growing families, particularly those supplying their produce to cooperative sugar mills. Together, the higher procurement price and bonus announcement are intended to strengthen farmers earnings and make agriculture a more financially sustainable occupation.

The timely distribution of the announced benefits will be important in ensuring that farmers receive the intended support.

Four Cooperative Sugar Mills Support Sugarcane Farmers

Chhattisgarh operates four major cooperative sugar mills that procure and process sugarcane produced by farmers across the state.

These include:

• Bhoramdev Cooperative Sugar Mill: Kawardha

• Mahamaya Cooperative Sugar Mill: Surajpur

• Sardar Vallabhbhai Patel Cooperative Sugar Mill: Pandariya, Kabirdham

• Maa Danteshwari Maiya Cooperative Sugar Mill: Balod

These mills provide an organised market for sugarcane growers and support local agricultural activities. By purchasing and crushing sugarcane, they also contribute to the rural economy and help connect farmers with the sugar production industry.

The additional bonus announced for farmers associated with these mills is expected to strengthen the cooperative sugarcane sector and provide financial relief to agricultural households.

Chhattisgarh Produces Around 1.86-2.04 Million Tonnes of Sugarcane Annually

Chhattisgarh produces approximately 1.86 million to 2.04 million tonnes of sugarcane annually, according to the available figures. The crop is cultivated in several parts of the state, including Kabirdham, Surguja, Durg, Bilaspur and Raipur.

Kabirdham is considered one of the state's important sugarcane-producing districts, with cooperative sugar mills helping farmers market their produce.

The increase in the procurement price could encourage more farmers to consider sugarcane cultivation or expand their existing acreage. Higher prices may improve the potential returns from the crop, particularly for farmers who can manage their production costs effectively.

However, the long-term impact will depend on several factors, including the cost of cultivation, weather conditions, irrigation facilities, crop productivity and the crushing capacity of sugar mills.

Access to reliable irrigation, timely payments and sufficient processing capacity will remain important for farmers looking to benefit from the revised rate.

What the Sugarcane Price Hike Means for Farmers

The increase from ₹355 to ₹425 per quintal represents an additional ₹70 for every quintal of sugarcane sold at the revised rate.

For example, a farmer supplying 100 quintals of sugarcane would receive an additional ₹7,000 at the new rate compared with the earlier price, before accounting for any applicable deductions or payment conditions.

The benefit will vary according to the quantity of sugarcane supplied. Farmers who have already sold their produce during the 2025-26 crushing season are also covered by the announced price revision, according to the state government's statement.

The additional bonus for more than 31,000 farmers provides another form of support to those associated with cooperative sugar mills.

Overall, the decision is an important step towards improving the financial prospects of Chhattisgarh's sugarcane farmers. If the revised prices and bonuses are delivered on time, the measures could support rural incomes, strengthen cooperative sugar mills and encourage the expansion of sugarcane cultivation across the state.

Also Read: Paddy Prices Surge in India: 1121 Sets Record, 1509 Crosses ₹4,800 per Quintal

CMV360 Says

Chhattisgarh's decision to raise sugarcane procurement prices from ₹355 to ₹425 per quintal offers farmers an additional ₹70 per quintal and positions the state above the reported rates in Punjab, Haryana and Uttar Pradesh. The ₹51.09 crore bonus for over 31,000 farmers adds further financial support. Effective from the 2025-26 crushing season, these measures could improve farm incomes and encourage sugarcane cultivation, depending on production costs, irrigation, weather and sugar mill capacity.