TN govt sanctions Rs 603 crore sugarcane incentive; farmers assured Rs 4,000 per tonne

CHENNAI: The Tamil Nadu government has sanctioned Rs 603.34 crore to provide a special incentive of Rs 709.50 per tonne to sugarcane farmers who supplied their produce to sugar mills during the 2025-26 crushing season, Agriculture - Farmers’ Welfare Minister Vinoth said on Thursday.

The incentive, sanctioned from the State exchequer on the directions of Chief Minister C Joseph Vijay, will ensure that farmers receive Rs 4,000 per tonne of sugarcane, including the Fair and Remunerative Price (FRP) fixed by the Centre.

For the 2025-26 crushing season, the Centre has fixed the FRP at Rs 3,290.50 per tonne for sugarcane linked to a 9.5 per cent sugar recovery rate. The State’s special incentive of Rs 709.50 will take the total price to Rs 4,000 per tonne.

Farmers whose sugarcane records a sugar recovery rate above 9.5 per cent will receive a proportionately higher price, exceeding Rs 4,000 per tonne, according to the government.

The decision follows the long-standing demand of sugarcane growers for a higher price and is aimed at safeguarding their interests. The government expects the measure to encourage sugarcane cultivation, improve the functioning of sugar mills and increase the production of sugar and its by-products.

The incentive will cover farmers who supplied sugarcane to 29 mills that undertook crushing operations during the 2025-26 season. These comprise 12 cooperative, two public-sector and 15 private sugar mills.

Details of eligible farmers, including the quantity of sugarcane supplied, Aadhaar numbers and bank account details, have been collected. The beneficiaries will be identified after recommendations by district-level committees headed by Collectors and scrutiny by the Directorate of Sugar.

Direct transfers to Aadhaar-linked bank accounts are scheduled to begin from the upcoming Deepavali festival. Around 90,000 sugarcane farmers are expected to benefit from the scheme.