Sugarcane Prices in Uttar Pradesh Trigger Intense Competition
Sugarcane prices in Uttar Pradesh have risen sharply this crushing season, with jaggery and khandsari units offering between Rs 400 and Rs 425 per quintal to farmers. The aggressive buying has triggered intense competition for cane, raising serious concerns about potential shortages for sugar mills and casting doubt on higher sugar production estimates compared to last year.
Industry insiders describe the situation as a price war, with sugar mills, jaggery crushers, and khandsari units competing fiercely to secure limited sugarcane supplies.
Sugar Mills Under Pressure as Cane Supply Tightens
In many districts of Uttar Pradesh, jaggery and khandsari units are offering prices well above the State Advised Price (SAP), putting sugar mills under mounting pressure. Mills are struggling to ensure adequate cane availability during the current crushing season and may be forced to shorten operations if shortages persist.
Despite healthy-looking standing crops, farmers and experts say sugarcane productivity is around 10 percent lower than last year, leading to reduced availability and pushing prices beyond the SAP fixed for the 2025–26 crushing season.
Lower Recovery, Higher Prices Push Crushers to Pay More
Krishnapal Singh, founder of modern jaggery unit Hans Heritage Jaggery in Shamli district, said sugarcane availability has been a major challenge this season. His unit increased the purchase price from Rs 380 to Rs 400 per quintal to ensure supply.
“The crop looks good in the fields, but sugar content has not improved as expected. Both cane weight and recovery—whether sugar or jaggery—remain low,” he said. Due to limited cane availability, his unit is operating for only 12 hours a day.
Although jaggery prices have fallen from Rs 38 per kg to Rs 34 per kg, a recovery rate of around 14 percent is still enabling crushers to offer better prices to farmers.
Mills Struggle Despite Quick Payments
A senior official at a sugar mill in Meerut said that even high cane prices have not eased procurement challenges.
“There is intense competition among sugar mills to maximize crushing, but lower yields due to disease, weather stress, and competition from crushers have made procurement difficult,” the official said.
He added that mills are ensuring payments within a week of sugarcane delivery to attract farmers.
Declining Cane Area Adds to Crisis
Industry experts point out that the SAP has not been revised for the past two years, while harvesting costs have climbed to Rs 55–60 per quintal. This has discouraged farmers from expanding sugarcane acreage, even in traditional cane belts of Western Uttar Pradesh.
In districts such as Saharanpur, Muzaffarnagar, and Shamli, many farmers are shifting toward agroforestry crops like eucalyptus, further tightening cane supply for mills.
Uttarakhand Crushers Pay Even Higher Rates
Across the border in Uttarakhand’s Haridwar–Laksar belt, a major hub for jaggery production, crushers are reportedly paying Rs 430 to Rs 450 per quintal for sugarcane.
Local farmer Rahul Lohan said immediate cash payments are another reason farmers prefer supplying to crushers.
“Sugar mills are finding it very difficult to procure cane this season,” he said.
Farmer Rishipal Singh from Bahadrabad-Jatt area added that labor shortages and stable sugarcane prices in recent years have pushed growers toward agroforestry.
“Earlier, long queues of tractor-trolleys were seen outside sugar mills. Now, those queues are outside crushers,” he said.
Early Crushing Season End Likely Again
This year, the Uttar Pradesh government increased the SAP by Rs 30 to Rs 400 per quintal, while Uttarakhand fixed its SAP at Rs 405 per quintal. However, disease outbreaks such as red rot and stagnant prices over the past two years have led to declining sugarcane output in both states.
Last year, sugar mills in Uttar Pradesh and Uttarakhand were forced to end the crushing season early. Given the current surge in sugarcane prices in Uttar Pradesh and tightening supply, industry insiders warn that the situation could be even more challenging this season.
