UP Budget 2026-27: Big boost for farmers as sugarcane price rises, record crop payments highlighted

UP Budget 2026-27: Uttar Pradesh’s Budget for the financial year 2026-27 has put farmers and rural prosperity at the heart of the state’s development plans, with Finance Minister Suresh Kumar Khanna highlighting record sugarcane payments, a higher cane price, expanded crop procurement and fresh steps to strengthen agriculture-linked infrastructure. Presenting the Budget in the Assembly, the Yogi Adityanath-led government said the focus remains on boosting farm incomes, ensuring timely payments and reinforcing Uttar Pradesh’s role as one of India’s biggest agricultural states.

The Budget speech made it clear that agriculture remains central to the state’s economy, with measures aimed at supporting sugarcane growers, wheat and paddy farmers, and millet cultivators through stronger procurement and price support.

Record sugarcane payments bring relief to cane farmers

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One of the biggest takeaways for farmers was the government’s claim of record sugarcane payments. The state said it has facilitated payouts of more than Rs 3,04,321 crore to sugarcane farmers during its tenure.

According to the Finance Minister, this amount is Rs 90,802 crore higher than the combined sugarcane payments made over the previous 22 years, underlining the government’s push to clear dues faster.

For cane farmers, timely payments remain the biggest issue, and officials said the record disbursements could ease pressure ahead of the next crushing season.

Sugarcane price raised for 2025-26 season

The Budget also announced a Rs 30 per quintal increase in sugarcane prices for the 2025-26 crushing season. The government said this hike will result in around Rs 3,000 crore more reaching sugarcane farmers through additional payments.

Wheat and paddy procurement

The government also highlighted large-scale crop purchases to ensure farmers receive direct payments. In the 2025-26 rabi season, Uttar Pradesh bought 10.27 lakh metric tonnes of wheat and released Rs 2,512 crore in payments.

In the kharif season, procurement was even larger. The state purchased 42.96 lakh metric tonnes of paddy, with payouts of over Rs 9,710 crore made to farmers.

Millet farmers also saw support, as the government purchased 2.14 lakh metric tonnes of bajra from 54,253 farmers, paying Rs 595 crore.

Officials said the procurement drive is meant to provide farmers assured prices and timely returns during peak marketing seasons.

Uttar Pradesh remains a leading agricultural state

The Finance Minister reiterated that Uttar Pradesh continues to be one of India’s biggest agricultural producers, contributing significantly to crops such as wheat, paddy, sugarcane, potato, banana, mango, guava, amla and mint.

The government also flagged gains in irrigation and farm output. Officials said the irrigated area has expanded sharply since 2016-17, while cropping intensity has risen from 162.7 per cent to 193.7 per cent by 2024-25, indicating more productive use of farmland across multiple crop cycles.

Agri-export hubs to help farmers access global markets

The Budget also announced plans to set up agri-export hubs under the World Bank-supported UP Agris project. The government said the aim is to build stronger export networks so farmers growing fruits, vegetables and other high-value crops can access overseas markets and better prices.

Budget links farm prosperity with wider economic growth

The government framed farmer welfare as part of Uttar Pradesh’s broader development strategy, alongside infrastructure expansion, investment promotion and job creation.

The Budget speech highlighted that the state’s gross state domestic product for 2024-25 has been pegged at Rs 30.25 lakh crore, showing a growth of 13.4 per cent over the previous year.

The government said agriculture-led growth, stronger procurement systems and higher cane prices will remain key pillars of rural prosperity in 2026-27.