Lucknow: The Uttar Pradesh government is likely to increase cane prices by 15%.

According to sources, the government has almost made up its mind to hike the cane prices by approximately 15% over last year.

The government is also contemplating incentives for millers so as to blunt the pinch of the hike, which would mean that the hike would be in the bracket of around Rs 25-30 per quintal.

“The chief minister was apprised of the situation at a meeting on Wednesday,” said an official privy to the development. He also said the chief minister is considering on the incentives and will make an announcement on Thursday.

Sources confirmed the government was open to making changes in the excise policy to give more breathing space to millers.

The changes can be in the shape of the government lifting the ban on the sale of free molasses of factories after setting aside the 20% reserved quota for country liqor.