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Sugarcane Cultivation Cost Per Acre in India: Exploring State-wise Average Production Cost

Sugarcane cultivation in India is a vital component of the country’s agricultural sector. This blog delves into the state-wise average production costs per acre of sugarcane. By examining factors like labor, irrigation, fertilizers, and regional variations, we provide a comprehensive overview. Our focus is to offer insights into the financial aspects of sugarcane farming across different Indian states, aiding farmers and stakeholders in understanding the economic landscape of this crucial crop.

Sugarcane Cultivation Cost Per Acre in India

Sugarcane Cultivation in India

Sugarcane is a tropical crop that grows well in India. It is the main source of sugar, gur and khandsari. India has about five million hectares of sugarcane cultivation area and is the world’s top producer and user of sugar. Sugarcane is planted in different seasons depending on the region. It needs fertile soil, plenty of water, and a warm climate. Sugarcane production faces challenges such as pests, diseases, low yield, and environmental issues.

Land Preparation Costs for Sugarcane Cultivation

The first step in sugarcane cultivation is to prepare the land for planting. This involves plowing, leveling, harrowing, and furrowing the soil. The cost of land preparation depends on the size of the land, the type of soil, the availability of machinery, and the labor wages. The average price of land preparation for sugarcane cultivation in India was Rs. 8,500 per acre.

Cost of Seed and Planting Material

The seed and planting material for sugarcane cultivation. The seed cane is usually obtained from the previous crop or certified nurseries. The planting material consists of sugarcane setts or buds, which are cut from the seed cane and treated with fungicides and insecticides. The cost of seed and planting material depends on the variety of sugarcane, the quality of the seed cane, the quantity of setts required, and the transportation charges. The average cost of seed and planting material for sugarcane cultivation in India was Rs. 10,000 per acre.

Fertilizer and Nutrient Management Costs

Sugarcane is a heavy feeder crop that requires a lot of nutrients for its growth and development. The main nutrients required by sugarcane are nitrogen, phosphorus, potassium, and sulfur. The fertilizer and nutrient management costs include the cost of chemical fertilizers, organic manures, biofertilizers, micronutrients, soil testing, and application charges. The cost of fertilizer and nutrient management depends on the soil fertility status, the recommended dose of nutrients, the price of fertilizers, and the labor wages. The average cost of fertilizer and nutrient management for sugarcane cultivation in India was Rs. 12,000 per acre.

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Sugarcane Farm

Irrigation Costs for Sugarcane Cultivation

Sugarcane is a water-intensive crop that requires frequent irrigation throughout its growth cycle. The irrigation costs include the cost of water sources, such as wells, canals, tanks, etc., the Cost of irrigation equipment, such as pumps, pipes, sprinklers, drip systems, etc., and the Cost of electricity or diesel for operating the pumps. The irrigation costs depend on the climatic conditions, the water availability, the irrigation method, and the energy charges. According to the IISR study, the average cost of irrigation for sugarcane cultivation in India was Rs. 15,000 per acre.

Costs Associated with Pest and Disease Management

Sugarcane is commonly susceptible to different pests and diseases that can reduce its yield and quality. The main pests that attack sugarcane are borers, termites, whiteflies, aphids, mealybugs, etc., while the main diseases are red rot, smut, mosaic, rust, etc. The costs associated with pest and disease management include the cost of pesticides, fungicides, herbicides, biocontrol agents, and application charges.

The price of pest and disease management depends on the pest and disease incidence, the type and quantity of chemicals used, and the labor wages. The average cost of pest and disease management for sugarcane cultivation in India was Rs. 7,000 per acre.

Labor Costs in Sugarcane Cultivation

Sugarcane cultivation involves a lot of manual labor for various operations such as planting, weeding, earthing up, irrigation, fertilization, pest and disease control, harvesting, etc. The labor costs depend on the number of laborers required, the duration of work, and the wage rate. The average labor cost for sugarcane cultivation in India was Rs. 25,000 per acre.

Machinery and Equipment Costs

Machinery and equipment are essential for preparing the land, planting the cane, applying fertilizers and pesticides, harvesting the cane, and transporting it to the mills. The cost of machinery and equipment depends on the type, size, and quality of the machines, as well as the availability and accessibility of credit facilities. The average cost of machinery and equipment for sugarcane cultivation in India was Rs. 12,500 per acre.

Post-Harvest Handling and Transportation Costs

Post-harvest handling and transportation costs include the expenses incurred for cutting, loading, unloading, and transporting the cane from the field to the mill. These costs vary depending on the distance between the field and the mill, the mode of transportation, the availability of labor, and the quality of roads. The average cost of post-harvest handling and transportation for sugarcane cultivation in India was Rs. 6,000 per acre.

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Sugarcane Farmer

Sugarcane Cultivation Cost

Costs of Marketing and Selling Sugarcane

Costs of marketing and selling sugarcane include the charges paid to the agents, brokers, commission agents, or cooperative societies for facilitating the sale of cane to the mills. These costs also depend on the prevailing market price of sugarcane, which is determined by factors such as demand and supply, government policies, international trade, etc. The average cost of marketing and selling sugarcane in India was Rs. 1,500 per acre.

Cost CategoryAverage Cost
Per Acre (Rs.)
Land Preparation8,500
Seed and Planting Material10,000
Fertilizer and Nutrient Management12,000
Pest and Disease Management7,000
Machinery and Equipment12,500
Post-Harvest Handling and Transportation6,000
Marketing and Selling1,500
State-wise Cultivation Cost Per Acre
StateCultivation Cost
Per Acre (Rs.)
Uttar Pradesh20,000
Tamil Nadu24,000
Andhra Pradesh23,000

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Sugarcane Ready to Harvest


The Sugarcane cultivation costs across various Indian states reveal significant regional variations, reflecting differences in labor, inputs, and agricultural practices. States like Maharashtra and Tamil Nadu exhibit higher expenses, while Punjab and Haryana present lower costs. This information is crucial for policymakers and farmers in optimizing resource allocation and enhancing sugarcane production efficiency in India.


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