Chennai: The Tamil Nadu government has announced a significant increase in special incentives for paddy and sugarcane farmers, aiming to bolster their income and welfare. Chief Minister C. Joseph Vijay made the announcement on Monday, August 10, 2026, during a session of the State Assembly, stating that the decision reflects the government’s commitment to protecting the interests of those cultivating these essential crops.
The revised incentive structure for paddy will see an increase to ₹289 per quintal for the fine-grade variety and ₹159 per quintal for the common-grade variety. These incentives are in addition to the Minimum Support Price (MSP). Consequently, the total effective procurement price for fine-grade paddy will be ₹2,750 per quintal, and for common-grade paddy, it will be ₹2,600 per quintal. The paddy procurement season is set to commence on September 1.
Information was available with The Chenab Times that this marks a historic increase, with the state government’s incentive for paddy being raised by over ₹156 in a single year for the first time. The announcement was made under Rule 110 of the Assembly, which allows for policy pronouncements without prior notice.
For sugarcane farmers, the state government will provide a special incentive of ₹709.50 per tonne. This enhancement, when added to the Central government’s Fair and Remunerative Price (FRP) of ₹3,290.50 per metric tonne, brings the total procurement price for sugarcane to ₹4,000 per tonne. This is a substantial hike, particularly for sugarcane growers who supply their produce to sugar mills in the state.
The Chief Minister highlighted that in the last five years, the special incentive for sugarcane had only seen an increase of ₹156. The current administration’s hike of ₹360.50 in the first year itself is a testament to its focus on agricultural livelihoods. He assured that the state government would continue to stand in solidarity with farmers, supporting their agricultural pursuits and rural livelihoods.
The decision comes amid ongoing discussions and demands from farmer groups for improved procurement prices to offset the rising costs associated with agricultural inputs, labor, and overall cultivation expenses. The Tamil Nadu Farmers Association and the Sugarcane Farmers Association have welcomed the revised rates, acknowledging the government’s responsiveness to their concerns.
The new rates for paddy and sugarcane will be effective from September 1, 2026, coinciding with the beginning of the upcoming procurement season for these crops. This initiative is expected to benefit a significant number of paddy and sugarcane growers across Tamil Nadu, providing them with more remunerative returns for their produce.
The Chenab Times News Desk