The 2026–27 sugarcane crushing season has begun, but Uttar Pradesh, the country's leading sugar-producing state, has yet to announce the State Advisory Price (SAP) of sugarcane. This delay is adding to the disappointment among sugarcane farmers in the state. Meanwhile, the retail price of sugar has increased by around 35 per cent over the past year, reaching at Rs 62-65 per kg.
The rise in sugar prices had raised hopes among farmers of receiving a better price for their sugarcane. However, despite the start of the crushing season, the Uttar Pradesh government has not announced the SAP. Significantly, Assembly elections in the state are due in just a few months.
Farmers’ organisations have continued to demand an increase in sugarcane prices, but they have failed to exert the expected pressure on the government. Unlike Maharashtra and Karnataka, Uttar Pradesh has not witnessed any major agitation over sugarcane prices.
Praveen Kumar, a farmer from Tejalhera village in Muzaffarnagar district, told Rural Voice that sugarcane crops were first damaged by rainfall in October. The delay in announcing the sugarcane price has subsequently pushed procurement rates at traditional jaggery-making units and crushers down to Rs. 350 per quintal. Sugar mills have started crushing, but farmers still do not know the government-declared price for their produce. Farmers had expected the sugarcane price to increase from Rs. 400 to at least Rs. 450 per quintal this year.
To meet festival expenses and clear their fields for wheat sowing, many farmers had to sell their sugarcane to traditional crushers at rates below Rs. 400 per quintal even before the sugar mills began operations.
KP Singh, owner of Hans Heritage Jaggery, a modern jaggery manufacturing unit in Jhinjhana, Shamli district, says that processing sugarcane into jaggery is currently proving difficult. Rainfall in October encouraged vegetative growth in sugarcane rather than increasing its sugar content. With crushing operations starting early, sugar recovery is also quite low. It will take at least another 15 days for sugarcane to produce good-quality jaggery. According to Singh, jaggery-making units are currently purchasing sugarcane at Rs. 350–380 per quintal. Prices may rise in the coming days as recovery levels improve.
Higher sugar prices had raised expectations of increased competition between sugar mills and jaggery and khandsari units for sugarcane procurement this year. Last year, ex-mill sugar prices were around Rs. 4,200 per quintal. They have now increased to approximately Rs. 5,300–5,500 per quintal, representing a rise of more than Rs. 1,000 per quintal.
Yashpal Malik, associated with Freyr Foods Limited, a jaggery and khandsari unit in Kharar Phugana, Muzaffarnagar district, told Rural Voice that wholesale jaggery prices are currently lower than sugar prices. Moreover, sugar recovery from sugarcane remains low at present. As a result, these units are unable to offer farmers higher prices for their sugarcane. Wholesale jaggery prices are currently in the range of Rs. 4,500–5,000 per quintal, while wholesale sugar prices are around Rs. 5,900–6,100 per quintal. Last year, wholesale jaggery prices were higher than sugar prices, and sugar was being used to manufacture jaggery.
Despite high sugar prices, low recovery levels and the Uttar Pradesh government's failure to announce the SAP, jaggery and khandsari units are currently unable to offer farmers better prices for sugarcane.
Farmers Fail to Build Pressure Even in an Election Year
Expectations were high that sugarcane prices would see a substantial increase ahead of the Uttar Pradesh Assembly elections. However, farmers’ organisations appear to have failed to put adequate pressure on the government over the issue. Apart from small-scale sit-ins and protests at the local level, there has been no major agitation over sugarcane prices this year. Several political factors are believed to be responsible for this situation.
Fragmentation among farmers’ unions and the alliance between the Bharatiya Janata Party (BJP) and the Rashtriya Lok Dal (RLD), which has considerable influence in western Uttar Pradesh, are among the major reasons. Consequently, the demand for a sugarcane price increase has largely remained confined to memorandums and formal representations to the government.
SAP Increased by Rs. 30 Last Year
The Uttar Pradesh government increased the State Advised Price (SAP) of sugarcane by Rs. 30 per quintal for the 2025–26 crushing season. Following the increase, the price of early-maturing varieties was fixed at Rs. 400 per quintal, while the price of general varieties was set at Rs. 390 per quintal. The price of rejected varieties was fixed at Rs. 355 per quintal.
The Bharatiya Kisan Union has demanded that the sugarcane price be fixed at Rs. 550 per quintal for the 2026–27 crushing season. Some other farmers’ organisations have raised their demand to as much as Rs. 600 per quintal.
Increase of Rs. 20–30 Expected
Given the prevailing circumstances, the sugarcane price in Uttar Pradesh is expected to increase by around Rs. 20–30 per quintal. The government faces the challenge of balancing farmers’ demands with the interests of sugar mills. However, the failure to announce the price even after the crushing season has begun is adding to farmers’ concerns.
During Chief Minister Yogi Adityanath's nine-year tenure, the sugarcane price has increased by a total of Rs. 85 per quintal. In comparison, the Akhilesh Yadav government increased the price by Rs. 65 per quintal during its five-year tenure. The increase during the tenure of BSP supremo Mayawati was higher. During her five years in office (2007–2012), the sugarcane price was increased by Rs. 120 per quintal.
Area Under Sugarcane Cultivation Declines
Rising cultivation costs are another major reason behind farmers’ dissatisfaction with sugarcane prices. In Uttar Pradesh, the area under sugarcane cultivation for the 2026–27 crushing season has declined from 28.61 lakh hectares last year to 28.14 lakh hectares. This represents a reduction of around 47,000 hectares.
According to farmers, the major reasons include rising cultivation costs, higher labour and irrigation expenses, and delays in payments by sugar mills.
Centre's FRP at Rs. 365 per Quintal
The Central Government has fixed the Fair and Remunerative Price (FRP) of sugarcane at Rs. 365 per quintal for the 2026–27 sugar season. This rate is based on a basic sugar recovery rate of 10.25 per cent. For every 0.1 percentage point increase in recovery above this level, a premium of Rs. 3.56 per quintal has been prescribed.
However, farmers in Uttar Pradesh receive the SAP fixed by the state government, which is generally higher than the Centre's FRP. Therefore, despite the announcement of the FRP by the Central Government, sugarcane farmers in Uttar Pradesh are still waiting for the state government's decision.