According to the state government, sugar mills in Uttar Pradesh have collectively paid more than ₹31,000 crore against total dues of nearly ₹35,000 crore for the 2025-26 sugar season (October-September). This represents approximately 90 per cent of outstanding cane payments, as reported by Business Standard. The state operates 121 sugar mills, comprising 95 private units, 23 mills operated by the UP Cooperative Sugar Mills Federation and three mills under the UP State Sugar Corporation.
According to the state government, sugarcane farmers have received payments of about ₹3.27 trillion between 2017 and 2026, demonstrating the state's commitment to timely farmer payments. Chief Minister Yogi Adityanath has directed officials to ensure the early settlement of all sugarcane arrears, as reported by Business Standard. The state's integrated sugar economy is estimated at around ₹50,000 crore annually, encompassing sugar, ethanol, molasses and related activities, and supports the livelihoods of nearly 4.8 million sugarcane growers.
Uttar Pradesh's 121 sugar mills collectively crushed nearly 87.80 million tonnes (MT) of sugarcane and produced around 8.97 MT of sugar, lower than the state's sugar output of 9.2 MT in the previous crushing season (2024-25). Sugar mills achieved an average sugar recovery rate of 10.21 per cent, with the state's recovery rate higher than that of other major sugar-producing states, including Maharashtra at 9.49 per cent and Karnataka at 8.19 per cent, as reported by Business Standard.
For the 2025-26 season, the Yogi Adityanath government increased sugarcane prices by ₹30 per quintal to ₹400 per quintal for early varieties and ₹390 per quintal for general varieties. The increase is expected to result in additional payments of around ₹3,000 crore to sugarcane growers during the current season. According to Deepak Guptara, Secretary General of the UP Sugar Mills Association (UPSMA), sugar and ethanol prices have remained unchanged despite rising input costs in sugar production, affecting mills' ability to clear dues, as reported by Business Standard.
The 'Smart Ganna Kisan' system has digitised cane area registration, surveys and slip issuance, helping eliminate middlemen from the process. The sugar industry has been urging the central government to increase ethanol prices, arguing that higher rates are necessary for the long-term viability of the sector, as reported by Business Standard. The state's integrated sugar economy continues to support the livelihoods of millions of farmers while maintaining its position as a major sugar-producing state in India.
