Chennai, October 8:
The Tamil Nadu government has allocated Rs 603.34 crore from its own funds to provide a special incentive to sugarcane farmers who supplied their produce to sugar mills during the 2025–26 crushing season.
Chief Minister C Joseph Vijay had announced a special incentive of Rs 709.50 per tonne over and above the Fair and Remunerative Price (FRP) fixed by the Centre. The measure is aimed at supporting sugarcane farmers and addressing their longstanding demand for better prices.
With the State incentive, farmers supplying sugarcane with a sugar recovery rate of 9.5% will receive Rs 4,000 per tonne. This comprises the Centre’s FRP of Rs 3,290.50 per tonne and the State government’s additional incentive of Rs 709.50.
Farmers supplying sugarcane with a recovery rate exceeding 9.5% will be eligible for a price higher than Rs 4,000 per tonne, in accordance with the applicable pricing formula.
During the 2025–26 crushing season, 29 sugar mills operated in Tamil Nadu. These included 12 cooperative mills, two public sector mills and 15 private mills.
The government has collected details of the quantity of sugarcane supplied by farmers, their Aadhaar numbers and bank account information to facilitate the disbursement. Eligible beneficiaries will be identified based on recommendations from district-level committees headed by the respective District Collectors. The Directorate of Sugar will subsequently scrutinise the details.
The incentive will be transferred directly to the Aadhaar-linked bank accounts of eligible farmers through the direct benefit transfer system. According to the government order, arrangements are being made to begin the disbursement around the forthcoming Deepavali festival.
Approximately 90,000 sugarcane farmers are expected to benefit from the allocation, which is intended to provide additional financial support to cultivators and improve returns from sugarcane production.