Chennai, Oct 8 — Tamil Nadu has sanctioned Rs 603.34 crore as a special incentive for sugarcane farmers who supplied their crop to mills during the 2025-26 crushing season, Agriculture and Farmers’ Welfare Minister M.R.K. Panneerselvam said on Thursday.
The incentive of Rs 709.50 per tonne will supplement the Centre’s Fair and Remunerative Price (FRP), taking the 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 measure, approved on the directions of Chief Minister C. Joseph Vijay. Payments will be made directly into beneficiaries’ Aadhaar-linked bank accounts, with transfers scheduled to begin from the upcoming Deepavali festival.
For the 2025-26 season, the Centre fixed the FRP at Rs 3,290.50 per tonne for sugarcane linked to a 9.5 per cent recovery rate. The State’s additional payment will bridge the gap between that amount and the Rs 4,000 price.
Farmers supplying cane with a recovery rate above 9.5 per cent will receive proportionately higher payments, taking their total earnings per tonne beyond Rs 4,000, according to the government.
The assistance will cover growers who supplied sugarcane to the mills that operated during the season.
The government said it had collected farmers’ details, including the quantity of cane supplied, Aadhaar numbers and bank account information, to facilitate identification and payment.
District-level committees headed by Collectors will recommend eligible beneficiaries. The Directorate of Sugar will scrutinise the recommendations before the incentive is released.
The decision responds to a long-standing demand from sugarcane growers for higher payments and is intended to safeguard their interests, the government said.
It expects the support to encourage sugarcane cultivation, improve the functioning of mills, and boost the production of sugar and its by-products.
The sanctioned amount will be met from the State exchequer. Eligibility will be based on supplies made during the 2025-26 crushing season to the mills covered under the scheme.
For beneficiaries, the incentive represents an additional State payment over the applicable FRP. The final amount received will depend on the quantity of sugarcane supplied and its recovery rate, with the government specifying a total of Rs 4,000 per tonne at the 9.5 per cent recovery benchmark.