Tamil Nadu CM announces higher incentives for paddy, sugarcane farmers

Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced a significant increase in special incentives for paddy and sugarcane farmers, calling the move unprecedented in the state’s history. The announcement was made through a suo motu statement in the Assembly under Rule 110, which does not allow for a debate. Mr. Vijay acknowledged that the state’s financial position was not healthy but said the government had prioritised the welfare of farmers.

The Chief Minister stated that paddy procurement would begin in September. For fine varieties of paddy, the government would provide an incentive of ₹289 per quintal in addition to the minimum support price (MSP). For the general category, the incentive would be ₹159 per quintal. As a result, the total price payable to farmers would be ₹2,750 per quintal for fine varieties and ₹2,600 per quintal for the general category. These figures are exclusive of any other deductions or transport charges.

“For the first time in history, the State government has increased the incentive price by ₹156 in a year,” Mr. Vijay said. The incentive is provided by the state government over and above the MSP fixed by the Union government, which acts as a safety net for farmers. The increase of ₹156 per quintal applies to both fine and general categories, according to the Chief Minister.

For sugarcane farmers who have registered with sugar factories for the 2025-26 season, the Chief Minister announced a special incentive of ₹709.50 per tonne. This is in addition to the ₹3,290.50 per tonne fixed by the Union government, bringing the total price to ₹4,000 per tonne. Sugarcane farmers in Tamil Nadu typically supply to factories under a state-regulated system.

Mr. Vijay highlighted the scale of the increase, noting that the special incentive for sugarcane had risen by only ₹156 in the previous five years. In the first year of his government, the support price had increased by ₹360.50, he said. For the first time, the special incentive was being increased beyond ₹134, he added.

“Our government will not give up on farmers. We will stand by the farming sector and the rural economy,” the Chief Minister said during his statement. He reiterated that the decision was taken despite fiscal constraints, signalling the government’s commitment to rural welfare.

Assembly Speaker J.C.D. Prabhakar clarified that there would be no debate on the statement under Rule 110. In the past, members of political parties were allowed to “thank” the government for its announcements, but no such provision was mentioned on this occasion. This means the announcement will not be subject to legislative discussion immediately.

The announcements come at a time when paddy and sugarcane are major crops in Tamil Nadu. Paddy is cultivated across the Cauvery delta region and other parts of the state, while sugarcane is grown in several districts with active sugar mills. The special incentives are intended to supplement farmers’ income beyond the MSP, which is determined based on the cost of production and other factors.

The government’s decision to increase incentives, despite its stated financial difficulties, reflects the political importance of the farming community in the state. Farmers’ organisations have been demanding higher procurement prices and timely payments, and the announcement is likely to be seen as a response to those demands.

Detailed operational guidelines are expected from the state agriculture department, including the registration process for farmers and the schedule for paddy procurement. The government has not yet provided an estimate of the total financial outlay for these incentives.