UP Government Hikes SAP for Sugarcane | 30 Oct 2025
Why in News?
In a significant move aimed at benefiting sugarcane farmers, the Uttar Pradesh government has announced a Rs 30 per quintal increase in the State Advisory Price (SAP) for sugarcane for the 2025-26 crushing season.
Key Points
- About: The SAP for common sugarcane has been increased from Rs 360 to Rs 390 per quintal, while the SAP for early maturing varieties is now Rs 400 per quintal, marking the highest hike of Rs 30 since 2017.
- Impact: The increase in sugarcane prices is expected to result in an additional income of Rs 3,000 crore for around 46 lakh farmers in Uttar Pradesh.
- This will support the state's sugarcane farming community, which has seen the area under sugarcane cultivation grow from 20 lakh hectares to 29.51 lakh hectares.
- Other Measures: The state government has revived closed mills, established new ones, and expanded crushing capacities in existing mills, contributing to a rise in sugar production and ethanol production.
- Compressed biogas (CBG) plants have also been introduced in two sugar mills, promoting alternative energy in the sector.
- Digitisation of processes like acreage registration, calendaring, and slip issuance under the Smart Sugarcane Farmer system has removed intermediaries, benefiting farmers directly.
Sugarcane
- Geographical Conditions:
- Temperature: Between 21-27°C with hot and humid climate.
- Rainfall: Around 75-100 cm.
- Soil Type: Deep rich loamy soil.
- Top Producing States: Uttar Pradesh is the top producer with 122 operational sugar mills, the second highest in India after Maharashtra.
- Fair and Remunerative Price (FRP): FRP is the minimum price sugar mills are mandated to pay farmers for sugarcane.
- It is determined by the Central Government, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), in consultation with state governments and other stakeholders.
- State Advised Price (SAP): While FRP is set by the central government, state governments can set their own SAP, which sugar mills must pay farmers if higher than the FRP.