The decision was announced by Chief Minister Akhilesh Yadav after a meeting of the state cabinet here.
Yadav said his government will ensure sugar mills operate timely and make regular payment to cane growers.
The cane price, which has been a political issue in UP, has remained the same for last three years.
Though the decision was welcomed by the sugar industry, opposition parties did not leave any chance to criticise the government. They accused the ruling Samajwadi government of cheating cane farmers in the state, the country's second-largest sugar producer.
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"SP in its election manifesto had said that price of agriculture produce would be fixed according to the cost of production," Pathak recalled.
He further said that an increase in the SAP would have definitely motivated tillers to continue with cane farming.
Meanwhile, the UP Sugar Mills Association (UPSMA) welcomed the government's decision.
"UPSMA welcomes the government's step of not increasing the SAP for cane purchase during sugar season 2015-16 keeping in view the depressed market conditions and losses suffered by the industry during last five seasons," its secretary Deepak Guptara said.
However, as per official records, the state's sugarcane productivity as well as sugar production is less than the national average.
(Reopens NRG 14)
It is for the fourth consecutive crushing season that the state advisory price (SAP) of sugarcane has been kept unchanged.