TNLA No.007

TNLA No.007

Tamil Nadu promise ledger
TNLA No.007·10 Aug 2026·legislature

Chief Minister Announces Historic Increase in Paddy and Sugarcane Incentive

In an Assembly Rule 110 statement on 10 August 2026, Chief Minister Thiru C. Joseph Vijay announced a record increase in the state's paddy incentive: fine variety paddy up by Rs 289/quintal to Rs 2,750, and common variety up by Rs 159/quintal to Rs 2,600, over and above the MSP, ahead of the paddy procurement season starting 1 September. He called the over Rs 156/quintal hike in a single year unprecedented, and also announced a special state incentive for sugarcane over the Rs 3,290.50/tonne Union-fixed price for the 2025-26 crushing season.
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Press Release Content
Tamil Nadu Legislative Assembly Statement No.: 07 Date: 10.08.2026 Announcement by Hon'ble Tamil Nadu Chief Minister Thiru S. Joseph Vijay in the Tamil Nadu Legislative Assembly, under Rule 110, regarding the State Government's increased incentive for paddy and sugarcane Hon'ble Speaker, Farmers spend all their physical effort, resources and energy in cultivating, harvesting and selling paddy and sugarcane. Even though Tamil Nadu's financial position is not favourable at present, considering the need to safeguard the welfare of farmers who cultivate paddy and sugarcane, we have decided to increase the State Government's incentive for paddy and sugarcane to a level unprecedented in the history of Tamil Nadu. As the paddy procurement season is set to begin on 1st September, over and above the Minimum Support Price, the State Government's incentive for fine variety paddy has been increased by Rs.289 per quintal and for common variety paddy by Rs.159 per quintal, so that fine variety paddy will now fetch Rs.2,750 and common variety paddy Rs.2,600. This is the first time in history that the State Government has increased its incentive for paddy by more than Rs.156 in a single year. Similarly, for the 2025-26 sugarcane crushing season, the Union Government has fixed Rs.3,290.50 per metric tonne for farmers registered with and supplying sugarcane to sugar mills. Over and above this, the Government of Tamil Nadu will provide a special incentive of Rs.709.50 per tonne. As a result, farmers will receive a sugarcane price of Rs.4,000 per tonne. I wish to place on record in this House that while the special incentive for sugarcane was raised by only Rs.156 over the past five years, it has now been raised by Rs.360.50 in this very first year alone. This is the first time in history that the State Government has increased the sugarcane special incentive by more than Rs.134 per metric tonne in a single year. Our Government will always stand shoulder to shoulder with farmers, never abandoning them, and will remain steadfast in ensuring that agriculture flourishes and that rural livelihoods prosper. ****** Released by: Director, Directorate of Information and Public Relations, Chennai-9
Issued By: Legislative Assembly Secretariat, Tamil Nadu