Financial Relief of ₹1,500 Crore for Cooperative Sugar Mills in Gujarat

27-May-2026 12:20 PM

Gandhinagar: Taking a distinctive and revolutionary decision, the Chief Minister of Gujarat has taken a significant step in the interest of sugarcane growers. Under this initiative, a decision has been made to provide financial relief to cooperative-sector sugar mills, as well as to cooperative societies, to ensure they face no difficulties in making timely payments for sugarcane to the farmers.

According to Gujarat's Minister of Agriculture and Cooperation, a decision has been taken to provide financial assistance for the settlement of outstanding dues owed by cooperative sugar mills and societies to sugarcane growers for the seasons spanning from 2007-08 to 2024-25.

A financial grant of approximately ₹1,500 crore will be made available to Gujarat's sugar cooperative societies this month, directly benefiting over two lakh sugarcane farmers across the state.

It is noteworthy that cooperative-sector sugar mills typically pay sugarcane farmers the 'Fair and Remunerative Price' (FRP) declared by the Central Government.

Gujarat ranks among the top five sugar-producing states in the country. However, the financial health of cooperative sugar mills in the state—much like in other states—remains fragile; consequently, the state government has had to step forward to provide assistance.

In Gujarat, sugarcane growers receive a share not only from the revenue generated by sugar production but also from the income derived from molasses, ethanol, and electricity generation.