UP Govt Fixes New Sugarcane Price for 2025-26: Farmers to Get Higher SAP and One-Time Payment

Key Highlights

• New SAP: ₹400, ₹390, ₹355 per quintal.

• One-time payment mandated.

• Transport rate: 60 paise/km/quintal.

• Committee fee fixed at ₹5.50/quintal.

• Higher rates to support farmers’ income.

The Uttar Pradesh government has announced the new State Advised Price (SAP) for sugarcane for the 2025-26 crushing season. This decision was approved in a recent cabinet meeting and will apply to all cooperative, municipal, and private sugar mills across the state.

The new pricing aims to ensure fair income for sugarcane farmers, promote timely payments, and support the smooth functioning of the sugar industry.

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New Sugarcane Prices Announced for 2025-26

Uttar Pradesh, the largest sugarcane-producing state in India, has set different SAPs for three categories of sugarcane. Millions of farmers in the state depend on sugarcane farming for their livelihood, and the new rates are expected to bring financial relief.

New Sugarcane Rate List (Rs./Quintal)

• Early Varieties: ₹400/quintal

• Common Varieties: ₹390/quintal

• Unfit/Unsuitable Varieties: ₹355/quintal

These prices were fixed after considering factors such as current input costs, farmers’ welfare, market conditions, and the financial health of sugar mills. Early varieties fetch the highest rate because they give better recovery and higher yield.

Farmers to Receive One-Time Payment

For years, farmers have complained about delayed sugarcane payments made in instalments. Addressing this issue, the UP cabinet has now instructed all sugar mills to make lump-sum payments.

This will help farmers meet their immediate expenses, reduce financial stress, and avoid issues related to pending payments. With the cost of diesel, fertilizer, and labour rising every year, this decision is seen as a major relief for farmers.

New Government Guidelines for Sugarcane Transportation

The government has also revised the transportation rates for lifting sugarcane from centres outside the purchasing area of sugar mills.

New Transportation Rate

• 60 paise per quintal per km,

• Maximum limit: ₹12 per quintal

This aims to make the process more transparent, reduce disputes, and benefit both farmers and sugarcane committees.

Also Read: UP Govt Launches Mega Sugarcane Drive: 46 Lakh Buds to Boost Yields and Farmers Income

Contribution to Sugarcane Committees and Councils

Sugarcane committees and development councils play a major role in survey work, slip distribution, weighing, and payment processing. For the upcoming crushing season, the government has fixed its contribution rate at:

• ₹5.50 per quintal

This will strengthen these committees financially, enabling them to assist farmers more effectively.

How Much Relief Will Farmers Get?

Farmers believe the new SAP will help them manage rising input costs, though some farmer organisations still demand a rate above ₹450 per quintal.

Agriculture experts say:

• Farmers growing early varieties will benefit the most.

• Timely lump-sum payments will improve farmers’ financial stability.

• Balanced SAP ensures profitability for both farmers and mills.

Impact on the 2025-26 Crushing Season

With the new SAP in place, sugar mills will need to revise financial planning and explore new revenue options, especially through sugar sales and ethanol production.
Farmers are also likely to shift toward improved and early-maturing varieties, helping boost overall production and recovery rates.

Also Read: Seed Bill 2025 Faces Backlash: Farmers Say It “Supports Corporations, Not Cultivators”

CMV360 Says

The new SAP announced by the Uttar Pradesh government aims to support sugarcane farmers with higher prices, transparent transportation charges, and timely one-time payments. By ensuring fair value and reducing delays, the government seeks to strengthen farmers’ financial stability. Sugar mills will now plan operations accordingly, while improved rates for early varieties may encourage better cultivation practices. Overall, the decision is expected to boost both farmer income and the state’s sugar industry.