Union Budget 2026: Sugarcane farmers push for higher prices and subsidies

As the Union Budget approaches, Muzaffarnagar's sugarcane and jaggery industries have outlined their primary concerns and expectations, calling for more robust support measures and policy adjustments.

The Federation of Jaggery Traders has flagged inconsistencies in GST regulations and urged the government to review the policy, maintaining that essential food items like jaggery should be kept outside the tax net.

According to the President of the Federation of Jaggery Traders, Arun Khandelwal, "on jaggery, the government has set up GST based on packaging. If you are packing less than 25 kilos, there is GST on it and if you are packing above 25 kilos, then there is no GST. This is an erratic decision of the government. I believe that Basu committee gave a proposal of excluding food products. The government should think about their decision. Secondly, the government should consider how to relieve mandis, from interference of the Agricultural Produce Market Act”

Meanwhile, sugarcane farmers, while acknowledging the recent hike in the State Advised Price (SAP), say the increase has not met their expectations. Farmers are demanding that the SAP be raised to more than Rs 400 per quintal to adequately cover rising cultivation costs.

Pramod Baliyan, a sugarcane farmer, says, "This year, the government has increased prices less than expected by the farmers. It is a good rise but is less than what farmers expected. If it was 400 plus, then the farmers would have been happy. This year, the expectation of the budget is that farmers believe that the harvest will be less this time and sugarcane pressers are buying cane at higher prices, the government should implement an initiative so that money is transferred to farmers' accounts by the sugar mills so that they are evenly compensated."

Farmers are also seeking more food processing units across districts to strengthen their linkage with industries, along with subsidies on inputs such as manure, seeds, and farm equipment.

Another sugarcane farmer, Deshraj Chauhan said, "food processing units in every district and region should be effectively installed. Farmers should be connected to industries. Manure, seeds and other items like tractors and other equipment should be subsided by the Indian government. In the previous budget, the announcement of 5 lakh rupees farmers credit cards made by the government has still not been implemented on the ground."

Farmers and traders in Muzaffarnagar are optimistic that the government will address tax-related irregularities and carry out long-pending support programmes to bolster the region's sugar and jaggery industry with the Union Budget, which is set to be presented on February 1.