Sugarcane is a major cash crop of India, particularly in UP, Maharastra, Tamil Nadu, Karnataka, Andhra Pradesh, Bihar, Gujurat, and Foot hils of Uttarakhand. Sugarcane crop has a productivity of 70 tonnes/ha and an area of 4.2 mha. It plays a pivotal role in the national economy. Sugarcane is considered as one of the best cash crops in Orissa. It is grown in all the 30 districts of Orissa. The selected district Dhenkanal occupied 4th position in area (1.49 thousand ha) and in production (99.06 thousand MTs) and 5th position in yield (668.50 qtls/ha) in 2005-06. This study was carried out in Dhenkanal district, Orissa. A sample of 160 farmers was randomly selected from two blocks i.e. Dhenkanal and Kankadahad.The climatic constraints for sugarcane cultivation in Orissa will continue to account for disparity in cane productivity and sugar recovery in this area. Farmers perception based on their experience indicates a good rating for quality of soil, but poor rating for water quality. But a gap was found to be existing between potential and realized yield. The constraints regarding the sugarcane cultivation were mainly related to the payment problems, there is no alternative sugar mill other than Shakti sugar mill, the long waiting period for the disposal of cane besides harassment of the farmers by the staff of sugar mill. The long distance between sugarcane growers of the study area and sugar mill has added to difficulties of sugarcane growers, which has led to decline in area under sugarcane.