Uttar Pradesh has cleared more than 94% of sugarcane dues owed to farmers during the current crushing season, with 99 sugar mills in the state making 100% payment of their sugarcane purchase dues, according to an official statement. The state government said timely payments to sugarcane farmers remain a key priority, while various measures have been taken to strengthen the sugar industry, improve productivity and increase farmers’ incomes.
According to the Uttar Pradesh Cane Development Department, sugar mills across the state have crushed a record 9,220 lakh tonnes of sugarcane and produced 968.58 lakh tonnes of sugar over the past nine years. During the period from 2016-17 to 2025-26, sugarcane production in Uttar Pradesh increased significantly from 1,486.57 lakh tonnes to 2,362 lakh tonnes. Sugar production also increased from 87.73 lakh tonnes to 89.52 lakh tonnes during the same period.
The state has also recorded a substantial improvement in sugarcane productivity. Average sugarcane productivity increased from 72.38 metric tonnes per hectare in 2016-17 to 82.56 metric tonnes per hectare in 2025-26. This represents an additional yield of 10.18 metric tonnes of sugarcane per hectare for farmers. At the same time, the average sugar recovery rate improved from 10.61% to 10.83%, supporting higher sugar production from the available sugarcane.
The Uttar Pradesh government said it has taken several steps to ensure that sugarcane farmers receive timely and fair payments for their produce. So far, a record ₹3.25 lakh crore in sugarcane payments has been transferred directly into farmers’ bank accounts. The government said the direct payment mechanism has helped improve transparency and ensure that farmers receive their dues without unnecessary delays. 
In the current crushing season, more than 94% of the total sugarcane dues have already been paid to farmers. As many as 99 sugar mills have cleared 100% of their sugarcane payments, reflecting the state’s focus on timely settlement of farmer dues. The government said these measures have also contributed to a significant rise in the average income of sugarcane farmers, which has increased by ₹40,720 per hectare.
The state government said Uttar Pradesh continues to maintain its leading position in India’s sugarcane and ethanol sectors. Under the leadership of Chief Minister Yogi Adityanath, the Sugar Industry and Cane Development Department has focused on improving farmer welfare, expanding sugar production and strengthening ethanol manufacturing. According to the official statement, Uttar Pradesh currently ranks first in the country in sugarcane production, molasses production and ethanol production.
Uttar Pradesh has also taken steps to modernise its sugar industry and increase sugarcane crushing capacity. Four new sugar mills have been established in the state, while seven previously closed sugar mills have been revived. In addition, the crushing capacity of 44 existing sugar mills has been expanded. These measures have added 1,28,500 tonnes of cane crushed per day (TCD) to the state’s overall crushing capacity.
The government has also promoted the khandsari industry through an online licensing system and investor-friendly policies. As a result, 285 new khandsari units have been established in Uttar Pradesh. These units have generated direct and indirect employment opportunities for around 41,900 people, according to the official statement.
The latest data highlights the continued expansion of Uttar Pradesh’s sugar and sugarcane economy, supported by higher cane production, improved productivity, better sugar recovery and increased processing capacity. With more than 94% of current-season sugarcane dues already cleared and 99 mills completing 100% payments, the state government is positioning timely farmer payments and industrial expansion as key pillars of its sugarcane policy. At the same time, the addition of new mills, revival of closed units and expansion of existing crushing capacity is expected to further strengthen Uttar Pradesh’s position as India’s leading sugarcane and ethanol-producing state.
