DEHRADUN: In a major relief for sugarcane growers, the state government has approved a substantial increase in the State Advised Price for the 2025–26 crushing season. On the decision to hike the sugarcane price, Chief Minister Pushkar Singh Dhami said the move reflects the state’s commitment to ensuring fair and timely remuneration to farmers and strengthening their economic position ahead of the new harvest cycle.
Under the revised rates, the price for early-maturing sugarcane has been raised from ₹375 to ₹405 per quintal, while the price for the normal variety has increased from ₹365 to ₹395 per quintal. This ₹30 jump is one of the most significant revisions introduced in recent years and is expected to benefit thousands of farming families across the plains of Uttarakhand.
Chief Minister Dhami said the government’s objective is clear: “Farmers must receive full and fair value for their produce, and there should be no delay in payments.” He emphasised that sugarcane farmers are central to the rural economy and that strengthening their income is one of the government’s top priorities.
Decision After Extensive Consultation
Officials confirmed that the new SAP rates were finalised after a structured consultation process involving cooperative, public and private sugar mills, the Sugarcane Development Department, agricultural experts and representatives of farmer organisations. The government also studied the Fair and Remunerative Price announced by the Centre, the prevailing rates in Uttar Pradesh and the specific geographical and agricultural conditions of Uttarakhand before arriving at a “balanced, farmer-centric decision.”
Agriculture department sources said the review process was detailed because production costs, labour, fertiliser prices and transportation challenges have all increased for farmers in recent years. “The price hike reflects the government’s resolve to support rural families and ensure that cultivation remains viable,” an official said.
Farmers Welcome The Move
Farmers from Haridwar, Laksar, Bhagwanpur and other cane-producing regions had recently submitted a memorandum to the Chief Minister demanding a revision in SAP along with infrastructure upgrades and faster settlement of pending dues. The new announcement has been welcomed widely, with farmer groups calling it “timely and meaningful.”
A farmer representative who met the Chief Minister earlier said, “This increase gives us confidence. Rising costs had become a burden, but the new rates will help us recover expenses and stay motivated for the next season.”
Background: Earlier Meeting With Farmers
Earlier this month, sugarcane growers from Haridwar met Chief Minister Dhami to raise several issues including the need for a fair price, construction of flood protection embankments, the establishment of a sugar mill in the Iqbalpur–Jhabreda–Bhagwanpur region, construction of irrigation canals and clearance of long-pending dues of Doiwala mill.
The Chief Minister had assured farmers that their demands would be resolved positively and that the state is committed to creating a transparent, farmer-friendly procurement system. The latest SAP decision is being seen as a follow-up to that assurance.
Impact On Rural Economy
Agricultural economists say the revised SAP will directly benefit more than one lakh sugarcane growers in Uttarakhand. Cane farming remains one of the most stable sources of income for small and marginal farmers, particularly in Haridwar and Udham Singh Nagar districts.
Experts believe the hike could encourage higher cane production in the coming season, as better remuneration usually leads to increased sowing and improved crop care. They also note that the decision reflects growing sensitivity toward the challenges faced by hill-state farmers, who often deal with higher transportation and labour costs compared to those in larger agricultural states.
Key Challenge: Timely Payments
While welcoming the price hike, experts cautioned that timely payments will be crucial. Delays in cane payments have historically weakened the impact of SAP hikes. Government officials said the Chief Minister has issued strict directions to all mills to ensure transparency, avoid procurement bottlenecks and make sure farmers do not face any inconvenience at purchase centres.
The Sugarcane Department will issue detailed guidelines for monitoring procurement, tracking payments and addressing grievances. A district-level mechanism is likely to be activated to ensure accountability.
Strengthening Farmer Welfare
Officials said the state government is also focused on improving rural infrastructure, strengthening irrigation networks and upgrading mill capacities to handle higher production. Better transport and storage systems are expected to be part of the state’s broader agricultural reform plan.
For sugarcane farmers, the revised SAP is expected to provide a measure of financial stability just before the crushing season begins. If implemented effectively across all mills, the decision could significantly strengthen Uttarakhand’s rural economy and give thousands of families renewed confidence for the agricultural year ahead.
Darpita covers business, industry, startups, and economic developments with a focus on Uttarakhand’s emerging markets. She writes on MSME growth, taxation, government policies, and the state’s entrepreneurial ecosystem. Known for simplifying complex financial topics, she aims to make business news accessible and relevant to local readers.
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