SALEM: Sugarcane farmers and farmers' associations have urged the Tamil Nadu government to release the special incentive of Rs 709.50 per tonne for the 2025-26 crushing season before Deepavali, saying the cane year ended on September 30 and the payment would provide much-needed financial relief to growers.
The government has sanctioned Rs 603.34 crore for the incentive, which, along with the centre's minimum Fair and Remunerative Price (FRP) of Rs 3,290.50 per tonne, will take the total price payable to eligible farmers to Rs 4,000 per tonne.
The cane year usually runs from October 1 to September 30, though crushing begins at different times across mills. The state's special incentive has been increased to Rs 709.50 per tonne from Rs 349 per tonne provided during the previous DMK government. Around 9,000 registered farmers who supplied cane during the season are expected to benefit.
In TN, 29 sugar mills operated during the 2025-26 season — 12 cooperative mills, two public sector units and around 15 private mills. The average sugar recovery rate across the state stood at around 9%.
Only about four mills have recorded rates marginally above 9.5%, with Subramaniya Siva Cooperative Sugar Mills Ltd in Dharmapuri recording the highest. Farmers supplying cane to most other mills have received the minimum FRP of Rs 3,290.50 per tonne and are now awaiting the state's special incentive.
The FRP is fixed by the centre before each crushing season based on recommendations from the Commission for Agricultural Costs and Prices. For the 2025-26 season, the centre has fixed the FRP at Rs 3,550 per tonne for a basic sugar recovery rate of 10.25%.
The price increases or decreases for every 0.1 percentage-point change in the recovery rate. However, farmers are guaranteed a minimum FRP of Rs 3,290.50 per tonne, as no deduction is made for recovery rates below 9.5%.
R Velusamy, a sugarcane farmer from Namakkal who supplies cane to Mohanur Cooperative Sugar Mill, urged the government to release the incentive before Deepavali, citing financial difficulties caused by poor rainfall this year. "Farmers are facing financial distress due to poor rainfall, and the incentive would provide much-needed relief," he said.
K Balasubramaniam, general secretary of the Vivasaya Munnetra Kazhagam, said mills were preparing lists of eligible farmers. He cautioned that intermediaries who procure cane in bulk and register supplies in their names could prevent actual growers from receiving the benefit. "The government should verify the lists and ensure that the incentive reaches farmers who cultivated and supplied the cane," he said.
S Vimalnathan, secretary of the Tamil Nadu Cauvery Farmers Protection Association, said around 87 lakh tonnes of sugarcane had been crushed this season despite unfavourable climatic conditions and urged the government to release the incentive before Deepavali. "Sugar prices have risen from around Rs 42 per kg last year to more than Rs 65 now. Mills also earn from by-products such as ethanol, alcohol and power generation. The government should recognise farmers' contribution and ensure that all eligible growers receive the incentive," he said.
A senior official from the department of sugar said beneficiary lists were being prepared across all mills. While some mills had completed the exercise, the lists would be scrutinised and approved by the respective district-level committees before payments could begin.
"Funds have been sanctioned. Once the district committees complete verification and forward the approved lists, the incentive will be disbursed at the earliest," the official said. The amount will be transferred directly to eligible farmers' Aadhaar-linked bank accounts through the Direct Benefit Transfer system, facilitated by the Tamil Nadu e-Governance Agency.