UP Budget 2026: Good News for Farmers — Sugarcane Prices and Crop Support in Focus
Uttar Pradesh Budget 2026–27 prioritises agriculture with a 20% allocation hike, ₹30/quintal sugarcane SAP increase, and record payments of ₹3.04 lakh crore to farmers. With ₹3,000 crore added income support, focus on irrigation, FPOs, solar pumps, and rural infrastructure aims to boost farm productivity, sustainability, and rural growth.
The Uttar Pradesh Budget 2026–27, presented on February 11, 2026, has placed a strong emphasis on agriculture and rural welfare, offering several significant benefits for farmers, particularly those involved in sugarcane cultivation and other major crops. The budget highlights increased price support, record payments to farmers, larger agricultural allocations, and long‑term rural development plans.
Farmers at the Centre of Budget Priorities
In the latest annual budget, the Uttar Pradesh government reaffirmed its commitment to agriculture by significantly prioritizing agricultural support and rural sector development. The sector has seen a 20 % increase in allocation, underlining its importance to the state’s economy and livelihoods. This reflects the government’s effort to improve farmers’ income, productivity, and agricultural sustainability.
Sugarcane Price Hike: A Big Boost for Growers
Historic Price Increase
One of the most notable announcements affecting farmers was the increase in sugarcane prices. For the 2025–26 crushing season, the Uttar Pradesh government has raised the State Advised Price (SAP) by ₹30 per quintal. With the new rates:
- Early sugarcane varieties: ₹400 per quintal
- General varieties: ₹390 per quintal
This price adjustment is expected to inject approximately ₹3,000 crore directly into farmers’ incomes, providing a significant financial boost ahead of the harvesting season.
Record Payments to Farmers
The budget also highlighted that the state has made record sugarcane payments totaling over ₹3.04 lakh crore during the current government’s tenure. This figure is substantially higher than payments made in the preceding 22 years under previous administrations, underscoring continued financial support to growers in the sugar industry.
Expanded Agricultural Funding and Crop Support
Higher Budget Allocation
Agriculture and allied activities have been allocated a larger share under the UP Budget 2026–27, with funds directed toward:
- Irrigation expansion and farm infrastructure modernization
- Support for Farmer producer Organisations (FPOs)
- Investment in natural farming and renewable energy for irrigational uses such as solar pumps
These allocations not only aid sugarcane growers but also farmers engaged in foodgrain, oilseeds, millets, and other crops throughout the state.
Emphasis on Rural Growth and Sustainability
Beyond price support, the budget supports schemes that uplift rural economies and strengthen agricultural competitiveness. These include:
- Irrigation and water management expansion aimed at increasing cultivated area and cropping intensity
- Special funds to modernize farm infrastructure and reduce dependency on outdated equipment
- Schemes that connect rural producers to better markets and enhance value chains for crops beyond sugarcane
Why These Measures Matter
Income Stability for Farmers
Rising input costs and unpredictable weather have made farming riskier for rural households. Guaranteed price support and record payments help provide income stability and reduce vulnerability to market shocks.
Enhanced Productivity and Crop Choice
With focused funding on irrigation, mechanization, and natural farming models, farmers are positioned to diversify into higher‑value and more sustainable crops over time.
Stronger Rural Economy
Sugarcane is a key agricultural product for Uttar Pradesh — the state is among the largest producers in India. By improving sugarcane pricing mechanisms and investing in rural infrastructure, the budget supports broader economic growth in rural areas, leading to improved standards of living and employment.
Looking Ahead
The 2026–27 Budget reflects a continuing trend of prioritizing agrarian welfare and food security in Uttar Pradesh. By raising sugarcane prices, increasing direct payments, and enhancing agricultural outlays, the government aims to:
- Encourage productivity and income growth in farming communities
- Strengthen rural infrastructure and market linkages
- Support long‑term sustainability across key crop segments
With these measures, the UP government seeks to ensure that farmers receive fair returns for their produce, and that agriculture remains a viable and thriving sector in the state’s evolving economy.
Disclaimer:
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Source : India Herald
