The Tamil Nadu Government has sanctioned Rs 603.34 crore from the State’s funds as a special incentive for sugarcane farmers who supplied cane to sugar mills during the 2025-26 crushing season, Agriculture and Farmers Welfare Minister R. Vinoth said.
The incentive, fixed at Rs 709.50 per tonne, will be provided over and above the Centre’s Fair and Remunerative Price (FRP) of Rs 3,290.50 per tonne for sugarcane linked to a 9.5% sugar recovery rate. This will assure farmers a total cane price of Rs 4,000 per tonne.
For sugarcane with sugar recovery above 9.5%, farmers will receive more than Rs 4,000 per tonne, proportionately.
The scheme covers 29 sugar mills operating in Tamil Nadu during the 2025-26 season, including 12 cooperative, two public-sector and 15 private mills.
The incentive will be transferred directly to Aadhaar-linked bank accounts, with payments expected to begin around the upcoming Diwali festival.
Around 90,000 sugarcane farmers are expected to benefit from the scheme.
