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UP's agriculture sector records strong growth, farm economy expands

Priya Singh

August 14, 2026
UP's agriculture sector records strong growth

Lucknow: Uttar Pradesh’s agricultural economy has recorded strong growth in recent years, with improvements in farm production, irrigation, procurement, mechanisation, diversification and agricultural value chains strengthening the state’s role in India’s food economy.

Agriculture growth in Uttar Pradesh, which was around 8.5-8.6% in 2016-17, has risen to about 17.7-18% by 2024-25 and 2025-26, according to state-level assessments cited in the report. Agricultural GVA has also increased from around Rs2.96 lakh crore in 2016-17 to Rs 6.95 lakh crore in 2024-25.

Foodgrain production reaches record level

Foodgrain production has emerged as one of the key indicators of the state's agricultural growth. Uttar Pradesh produced around 547-557 lakh metric tonnes of foodgrains in 2016-18. By 2024-25, production had increased to approximately 737.4 lakh metric tonnes, an increase of around 28.5%.

The state's share in India's foodgrain production has also increased from about 18.1% to 20.6% during the period cited.

Wheat and sugarcane remain major contributors

Uttar Pradesh continues to be a major wheat-producing state, with production reaching approximately 414.39 lakh metric tonnes, accounting for around 35% of the national output.

The sugarcane sector has also undergone significant changes, particularly with efforts to improve payments to farmers. Cumulative payments to sugarcane farmers since 2017 have crossed approximately Rs 3.12-3.23 lakh crore, according to government figures cited in the report.

The state has also emerged as a major ethanol-producing hub. Ethanol production has expanded from roughly 42 crore litres to nearly 188 crore litres, creating an additional market for the sugarcane and sugar industry.

Irrigation and water-use efficiency get a push

Improving irrigation infrastructure has been another important part of the state's agricultural expansion. More than 1,300 irrigation projects have been completed or advanced, while projects including the Bansagar Canal, Arjun Sahayak Project and Pahari Dam have added to irrigation infrastructure.

Alongside major projects, the state has promoted drip and sprinkler irrigation under the Pradhan Mantri Krishi Sinchayee Yojana, while solar pumps under PM-KUSUM have also expanded. Government assessments cited in the report put the number of solar pumps installed at more than 86,000 in some reporting periods.

Direct support and procurement

Uttar Pradesh has also benefited significantly from direct farmer support under PM-KISAN. More than 3.1-3.17 crore farmers in the state have received PM-KISAN assistance, with cumulative transfers estimated at more than Rs 1 lakh crore.

Crop insurance has provided another layer of support, with claims of approximately Rs 5,110-5,660 crore paid to millions of farmers during the period cited.

On procurement, more than 24 million metric tonnes of wheat were procured between 2017-18 and 2025-26, benefiting more than 5 million farmers. Nearly Rs 46,000 crore was transferred directly into farmers' bank accounts during the period.

Focus shifts towards diversification and value addition

The state's agricultural strategy is increasingly moving beyond wheat, rice and sugarcane. Oilseeds and pulses have received greater attention, while horticulture, food processing and branding are also gaining importance.

The One District One Product (ODOP) initiative has created opportunities for agricultural and agro-processing products to access wider markets. The PM Formalisation of Micro Food Processing Enterprises scheme has further supported small food-processing units and linked them with ODOP.

Dairy has also become an important part of the state's rural economy. Milk production increased from around 290 lakh metric tonnes in 2017-18 to more than 388 lakh metric tonnes in 2024-25, strengthening Uttar Pradesh's position as India's leading milk-producing state.

The state is also seeing growth in fisheries, poultry, beekeeping and other allied activities, providing farmers with additional sources of income.

FPOs and women-led enterprises

Farmer Producer Organisations are being seen as an important way to help small farmers aggregate produce, access inputs, improve bargaining power and invest in processing and storage.

Women are also playing a growing role in rural enterprise. According to figures cited in the report, more than 13 lakh women-led farming families have been integrated into agricultural and livelihood activities, including seedling production, food processing and livestock-related work.

Despite the progress, challenges remain, including fragmented landholdings, climate risks, groundwater depletion and the need for better storage, cold chains and food-processing infrastructure.

The next phase of Uttar Pradesh's agricultural growth is expected to focus increasingly on higher productivity, diversification, value addition, climate resilience and stronger market linkages, with the broader aim of turning the state's large agricultural base into a more competitive and income-oriented farm economy.