Tamil Nadu Allocates ₹603.34 Crore for Sugarcane Incentive

The Tamil Nadu government has allocated ₹603.34 crore from the state funds as a special incentive for sugarcane farmers who supplied sugarcane to sugar mills during the 2025-26 crushing season.

According to the government order, Chief Minister Vijay had announced a special incentive of ₹709.50 per tonne over and above the Fair and Remunerative Price (FRP) fixed by the Central Government. The move is aimed at supporting sugarcane farmers and gradually fulfilling their demand for a higher price for sugarcane.

With the special incentive, sugarcane farmers are assured of receiving ₹4,000 per tonne for sugarcane with a 9.5% sugar recovery rate.

Sugarcane Farmers to Receive ₹4,000 per Tonne

During the 2025-26 season, crushing operations were carried out at a total of 29 sugar mills in Tamil Nadu, including 12 cooperative, 2 public sector and 15 private sugar mills.

For sugarcane with a 9.5% sugar recovery rate, the Central Government`s FRP of ₹3,290.50 per tonne and the state`s special incentive of ₹709.50 per tonne together ensure a total price of ₹4,000 per tonne.

For sugarcane with a sugar recovery rate above 9.5%, farmers will receive a price higher than ₹4,000 per tonne accordingly.

Special Incentive to Be Credited Directly to Farmers

As per the government order, details such as the quantity of sugarcane supplied, Aadhaar number and bank account details of eligible farmers have been collected.

The eligible farmers will be identified after recommendations by district-level committees headed by the respective District Collectors, followed by scrutiny by the Directorate of Sugar.

The special incentive will be transferred directly to the Aadhaar-linked bank accounts of eligible farmers through the direct benefit transfer system. The process is expected to begin from the upcoming Diwali festival, and necessary arrangements are underway.

Around 90,000 sugarcane farmers are expected to benefit from the special incentive.