Tamil Nadu raises paddy, sugarcane procurement payouts

Starting September 1, when the paddy procurement season opens, the state incentive on top of the central minimum support price will be ₹289 per quintal for fine grade paddy and ₹159 per quintal for common grade. The procurement price stands at ₹2,750 and ₹2,600 per quintal respectively.

For sugarcane, the incentive jumps ₹709 per tonne, bringing the total procurement price to ₹4,000 per tonne. The central government has set a price of ₹3,290.50 per metric tonne for the 2025-26 milling year for farmers registered with sugar mills. Tamil Nadu will add a special incentive of ₹709.50 per tonne.

Over the last five years, the special sugarcane incentive rose by only ₹156. This year alone it has increased by ₹360.50, Vijay said. He pledged the state government would "stand shoulder to shoulder" with farmers in supporting agriculture and rural livelihoods.