UP budget: Rs 475 crore for cane payments, Rs 90 crore for distillery, Rs 50 crore for new sugar mill and logistics hub and warehousing complex announced
Uttar Pradesh’s ₹8.08 lakh crore budget for FY 2025-26 includes ₹475 crore for timely cane payments and ₹90 crore for a distillery at Pipraich sugar mill. A new sugar mill at Chhata with ₹50 crore funding is also planned. The state prioritizes agriculture, infrastructure, AI innovation, and digital governance.
Uttar Pradesh Finance Minister Suresh Kumar Khanna presented the state’s Rs 8,08,736 crore budget for the Financial Year 2025-26 on Thursday, marking a 9.8 per cent increase from the previous fiscal.
The Uttar Pradesh government has also made announcements related to sugarcane farmers, a sector crucial to the state’s economy. A dedicated sum of Rs 475 crore has been allocated for the timely payment of cane prices to farmers, aimed at ensuring they receive their dues promptly. This step is part of the government’s broader plan to strengthen the economic position of sugarcane farmers and accelerate the growth of the sugar industry.
The budget also includes provisions for infrastructure and development within the sugar industry. The government has proposed Rs 90 crore for the establishment of a 60 KLPD distillery at the Pipraich sugar mill. Additionally, Rs 50 crore has been earmarked for the establishment of a new sugar mill with a capacity of 2,000 TCD at the closed Chhata sugar mill, along with a logistics hub and warehousing complex.
This budget is expected to further support the development of Uttar Pradesh’s agricultural and rural sectors, with a particular focus on enhancing the sugarcane industry, which is vital to the livelihoods of many farmers across the state.
Finance Minister said that to ensure timely sugarcane payments, the Escrow Account Mechanism was introduced in 2017, benefiting 46 lakh sugarcane farmers with a record Rs 2.73 lakh crore in payments—Rs 59,143 crore more than the total disbursed in the previous 22 years. Additionally, sugarcane productivity has increased from 72 to 85 tons per hectare, boosting farmers’ income.
Among sectoral allocations, 22 per cent has been earmarked for infrastructure, 13 per cent for education, 11 per cent for agriculture and allied services, 6 per cent for medical and health sectors, and 4 per cent for social security programs.
Additionally, a special provision has been made to equip the Legislative Assembly with modern IT systems, reinforcing the government’s focus on digital governance.
A key highlight of the budget is the establishment of an “Artificial Intelligence City” to position Uttar Pradesh as a leading hub for AI-based innovations and technology-driven enterprises.
To further support this, the government has proposed the creation of a Technology Research Translation Park in Cybersecurity.
To read more about Sugar Industry continue reading Agriinsite.com
Source : Chinimandi
