Chennai, Oct 2026 : The Tamil Nadu government has sanctioned Rs 603.34 crore as a special incentive for sugarcane farmers who supplied their produce to sugar mills during the 2025-26 crushing season, Agriculture and Farmers’ Welfare Minister M.R.K. Panneerselvam announced on Thursday.
The incentive of Rs 709.50 per tonne will be provided over and above the Centre’s Fair and Remunerative Price (FRP), taking the total payment to Rs 4,000 per tonne for sugarcane with a sugar recovery rate of 9.5 per cent.
Around 90,000 farmers are expected to benefit from the scheme, approved on the directions of Chief Minister C. Joseph Vijay. The government said the assistance would be transferred directly to beneficiaries’ Aadhaar-linked bank accounts, with payments scheduled to begin around the upcoming Deepavali festival.
For the 2025-26 crushing season, the Centre fixed the FRP at Rs 3,290.50 per tonne for sugarcane with a recovery rate of 9.5 per cent. The additional State incentive will bridge the difference between the central price and the State’s target payment of Rs 4,000 per tonne.
Farmers supplying sugarcane with recovery rates exceeding 9.5 per cent will receive proportionately higher payments, enabling them to earn more than Rs 4,000 per tonne, according to the government.
The scheme will cover growers who supplied sugarcane to mills that operated during the 2025-26 season. The government has collected details of farmers, including the quantity of cane supplied, Aadhaar numbers and bank account information, to identify eligible beneficiaries and facilitate direct transfers.
District-level committees headed by respective District Collectors will recommend eligible farmers. The Directorate of Sugar will scrutinise these recommendations before the incentive amount is released.
The decision addresses a long-standing demand from sugarcane growers for improved remuneration and is intended to protect farmers’ interests amid the costs and uncertainties associated with cultivation.
According to the government, the additional assistance is also expected to encourage sugarcane cultivation, improve the functioning of sugar mills and increase the production of sugar and related by-products.
The entire expenditure of Rs 603.34 crore will be borne by the State exchequer. Eligibility will be determined by the quantity of sugarcane supplied to mills covered under the scheme during the specified crushing season.
The final incentive payable to each farmer will depend on the quantity of cane delivered and its sugar recovery rate. The government said the measure would provide direct financial support to growers while strengthening the State’s sugar industry.
