2. Tamil Nadu Announces ₹603.34 Crore Special Incentive for Sugarcane Farmers
The Tamil Nadu government has announced a ₹603.34 crore special incentive for approximately 90,000 sugarcane farmers who supplied cane to sugar mills during the 2025–26 crushing season.
The announced state incentive is ₹709.50 per tonne. Together with the Centre’s Fair and Remunerative Price (FRP) of ₹3,290.50 per tonne, eligible sugarcane with a 9.5% recovery rate would receive a combined price of ₹4,000 per tonne.
The incentive is intended to improve farmers’ earnings and encourage sugarcane cultivation. Payments are to be made directly to eligible farmers’ Aadhaar-linked bank accounts after verification. Source: The Indian Express Tamil.
Key Facts for TNPSC
- State: Tamil Nadu
- Total announced incentive: ₹603.34 crore
- Expected beneficiaries: Approximately 90,000 farmers
- State incentive: ₹709.50 per tonne
- Central FRP cited in the announcement: ₹3,290.50 per tonne
- Combined price at 9.5% recovery: ₹4,000 per tonne
- Payment method: Direct bank transfer after verification
Why it matters: This development connects agriculture, farmers’ income, sugarcane pricing and state welfare measures.
Exam link: Indian Economy — Agriculture, Minimum/Remunerative Prices and Farmer Support.