Archive · 10 Oct 2026
Tamil Nadu Sanctions Rs 603.34 Crore Sugarcane Incentive
Tamil Nadu has set aside money to give extra payments to sugarcane farmers.
The farmers must have supplied cane to participating mills during the 2025-26 season.
The extra payment is Rs 709.50 for each tonne of cane.
At a 9.5% sugar recovery rate, this brings the total payment to Rs 4,000 per tonne.
Farmers whose cane has a higher recovery rate can receive more.
About 90,000 farmers are expected to get the money.
Payments are planned to start around Deepavali and will go directly to Aadhaar-linked bank accounts.
Officials will check which farmers qualify before releasing the payments.
Tamil Nadu sanctioned Rs 603.34 crore for farmers who supplied sugarcane to mills during the 2025-26 crushing season.
The State incentive is Rs 709.50 per tonne, bringing payment to Rs 4,000 per tonne at a 9.5% sugar recovery rate.
About 90,000 farmers are expected to benefit, with transfers scheduled to begin around Deepavali.
Farmers with recovery rates above 9.5% will receive proportionately higher payments.
District committees will recommend eligible growers, and the Directorate of Sugar will review recommendations before payment.
- Who
- Tamil Nadu sugarcane farmers who supplied cane to mills covered by the scheme; about 90,000 are expected to benefit.
- What
- The State sanctioned Rs 603.34 crore for an additional incentive of Rs 709.50 per tonne.
- When
- For the 2025-26 crushing season; transfers are scheduled to begin from the upcoming Deepavali festival.
- Where
- Tamil Nadu.
- Why
- The government says the incentive responds to growers’ demand for higher payments, safeguards their interests, and is intended to encourage cultivation and improve mill operations and production.
Government's stated case
Growers' payment demand
Adequacy of sugarcane payments
Government's stated case
The government says its additional payment brings the total to Rs 4,000 per tonne at a 9.5% recovery rate and is intended to safeguard farmers’ interests.
Growers' payment demand
The article says the incentive responds to sugarcane growers’ long-standing demand for higher payments; it does not report a growers’ response to this specific scheme.
- Total sanctioned
- Rs 603.34 crore, to be met from the State exchequer
- State incentive
- Rs 709.50 per tonne
- Total at 9.5% recovery
- Rs 4,000 per tonne, including the Centre's FRP
- Central FRP
- Rs 3,290.50 per tonne for cane linked to a 9.5% recovery rate
- Expected beneficiaries
- Around 90,000 farmers
- Payment method
- Direct transfer to beneficiaries’ Aadhaar-linked bank accounts
- Eligibility review
- District-level committees headed by Collectors recommend beneficiaries; the Directorate of Sugar scrutinises recommendations