According to TV reports, the martyr's wife and mother agreed to end the fast after a meeting with Akhilesh.
UP chief minister Akhilesh Yadav met the family and promised to fulfill their demands. "We have already given Rs 25 lakh... Money is not a big thing but to support and respect the family is the duty of the government," Akhilesh said.
"The family has shown the strength to face this (tragedy). We have to stand by them. We should all support the family of Lance Naik Hemraj. We have assured that whatever demands they have made for village will be met," he told reporters.
He said the jawan's mother and wife were weak and in grief. "So this is the time to stand by the family," he said.
Hemraj's wife Dharamvati, mother Meena Devi and cousin Narender were on fast and had refused to take "even liquid" as they remained steadfast on their demand for getting back Hemraj's head, which was severed by Pakistani troops who raided Indian territory in Poonch sector on January 8.
Earlier on Monday, the family had sought a visit by Army chief Gen Bikram Singh as a precondition to end their fast.
"We are not going to call off our fast if a leader comes here and request us to do so. We want the Army chief to come here and assure us that he will get Hemraj's head back from Pakistan. Only then we will call off our fast," martyr's cousin Narendra told reporters.
The family's demands came as Army chief Gen Bikram Singh addressed a press conference in New Delhi and said the beheading of two Indian soldiers in Pakistan army attack was unacceptable.
The General said the Army understands the grief of the families of the brave soldiers who laid down their lives as they are "our families too" and they will make all attempts to ease the pain and suffering of Lance Naik Hemraj's family.
BJP president Gadkari and senior leaders Swaraj and Rajnath Singh reached Hemraj's residence, 160 kms from Delhi and 50 km from Mathura, on Monday afternoon while Congress MP Avtar Singh Badana met the family earlier in the day.
But it did little to console the family. Narender questioned the visit of politicians at the house days after the incident alleging that they were trying to capitalise on the issue.
(With inputs from PTI)