More than 94 per cent of sugarcane dues owed to farmers in Uttar Pradesh for the current crushing season have been cleared, with 99 sugar mills in the state achieving 100 per cent payment, according to an official statement issued by the Cane Development Department. The same statement said the government has transferred a record Rs 3.25 lakh crore in sugarcane payments directly into farmers' bank accounts so far, and that the average income of sugarcane farmers in the state has risen by Rs 40,720 per hectare.
Record Crushing and Dues Clearance
According to the Cane Development Department, sugar mills in Uttar Pradesh crushed a record 9,220 lakh tonnes of sugarcane and produced 968.58 lakh tonnes of sugar over the last nine years. In the current crushing season, more than 94 per cent of sugarcane dues have been paid, and 99 sugar mills have ensured 100 per cent payment of dues, the department's statement said. The direct bank transfer mechanism, it added, has prioritised fair remuneration for sugarcane farmers for their produce.
Productivity and Recovery Rate Gains
Between 2016-17 and 2025-26, sugarcane production in Uttar Pradesh increased from 1,486.57 lakh tonnes to 2,362 lakh tonnes, while sugar production rose from 87.73 lakh tonnes to 89.52 lakh tonnes, the statement reported. Average sugarcane productivity increased from 72.38 metric tonne per hectare to 82.56 metric tonne per hectare, enabling farmers to obtain an additional yield of 10.18 metric tonne of sugarcane per hectare. During the same period, the average sugar recovery rate increased from 10.61 per cent to 10.83 per cent.
| Metric | 2016-17 | 2025-26 |
|---|---|---|
| Sugarcane production (lakh tonnes) | 1,486.57 | 2,362.00 |
| Sugar production (lakh tonnes) | 87.73 | 89.52 |
| Average sugarcane productivity (MT/ha) | 72.38 | 82.56 |
| Average sugar recovery rate (%) | 10.61 | 10.83 |
Crushing Capacity Expansion and Mill Revival
To modernise and strengthen sugarcane crushing capacity, four new sugar mills have been established, seven closed sugar mills were revived, and the capacity of 44 sugar mills was expanded, according to the statement. This resulted in the creation of additional crushing capacity of 1,28,500 TCD in the state. In addition, the implementation of an online licensing system and facilitative policies in the khandsari industry led to the establishment of 285 new khandsari units, generating direct and indirect employment for 41,900 people.
Uttar Pradesh's Leading Position in Sugar and Ethanol
Under the leadership of Chief Minister Yogi Adityanath, the Sugar Industry and Cane Development Department has established new benchmarks in farmer welfare, sugar production and ethanol, the statement said. Owing to the government's policies, Uttar Pradesh continues to rank first in the country in sugarcane production, molasses production and ethanol production, it added.
Supply-Chain Significance for Sugar and Ethanol Markets
For commodity analysts tracking raw material flows, the Cane Development Department's figures quantify the scale of Uttar Pradesh's cane economy: 9,220 lakh tonnes of cane crushed over nine years, 968.58 lakh tonnes of sugar produced, and 1,28,500 TCD of added crushing capacity. The reported recovery-rate improvement from 10.61 per cent to 10.83 per cent directly affects the sugar yield per tonne of cane processed, while the state's first-place ranking in molasses and ethanol production underlines its role as a feedstock supplier for both the sugar and biofuel segments.
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