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GOVERNANCE · AGRICULTURE · DAY 93

🌲 CM Vijay Hikes Paddy and Sugarcane Procurement Incentives

⏱ 3 min read

Announcing the revision under Rule 110 in the Assembly, CM Vijay raised the effective procurement price for fine-variety paddy to ₹2,750 per quintal and sugarcane to ₹4,000 per tonne, with the season opening September 1.

📅 August 10, 2026 · Day 93 in Office · Chennai

Chief Minister Vijay announced higher state incentives for paddy and sugarcane farmers in the Legislative Assembly on Monday, raising effective procurement prices ahead of a season that opens on September 1. Making the statement under Rule 110, he said the enhanced support was intended to reduce financial pressure on cultivators and ensure remunerative prices for their produce.

₹2,750Fine-Variety Paddy / Quintal
₹4,000Sugarcane / Tonne
Sept 1Procurement Season Opens

How the Numbers Work

The state incentive sits on top of the Minimum Support Price fixed by the Centre. For fine-variety paddy, Tamil Nadu will add ₹289 per quintal above the MSP, taking the effective price farmers receive to ₹2,750 per quintal. For common-variety paddy, the state incentive rises by about ₹150 per quintal, lifting the procurement price to ₹2,600.

CropState IncentiveEffective Price
Fine-variety paddy+₹289 / quintal₹2,750 / quintal
Common-variety paddy~+₹150 / quintal₹2,600 / quintal
Sugarcane+₹709.50 / tonne₹4,000 / tonne

On sugarcane, the Centre has fixed ₹3,290.50 per tonne for farmers who register with sugar mills and supply cane in the 2025-26 milling year. The Tamil Nadu government will add a special incentive of ₹709.50 per tonne on top, bringing the total to a round ₹4,000 per tonne — the first time the figure has reached that mark.

"This is not merely an announcement, but a milestone in ensuring better remuneration for farmers." — CM Vijay, in the Assembly

The Comparison the CM Drew

Vijay framed the sugarcane revision against the record of the previous government, saying that over the past five years the special incentive for sugarcane had risen by a cumulative ₹156 per tonne, whereas his government had raised it by ₹360.50 per tonne within its first year. He described the scale of the increase as a first for the state.

Paddy remains one of Tamil Nadu's principal crops, and procurement prices have a direct bearing on earnings for the large number of growers who depend on government procurement centres to market their harvest. The announcement follows the Agriculture Budget presented on August 6, which set out ₹17,000 crore in crop loans and a target of 125 lakh metric tonnes of food-grain production for 2026-27.

Paddy Procurement Sugarcane Farmers Rule 110 August 10, 2026

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