TN CM Vijay Hikes Paddy and Sugarcane Procurement Prices to Record Highs

Chief Minister C Joseph Vijay announced enhanced state incentives for paddy and sugarcane during a session in the state assembly in Chennai on Monday, driving crop procurement prices in Tamil Nadu to record high levels. Making the official statement under Rule 110 in the assembly, Chief Minister Vijay stated that the state government resolved to elevate the procurement incentives to safeguard the financial interests and overall welfare of farmers across the state, even while dealing with a difficult fiscal situation.

As per the revised rates announced by the Chief Minister, the overall procurement price for fine variety paddy has been pushed to a record Rs 2,750 per quintal, while the procurement price for common variety paddy has reached Rs 2,600 per quintal. Alongside the revised paddy rates, the state government has also increased the procurement price for sugarcane, bringing it to Rs 4,000 per tonne.

Detailing the financial breakdown of the state support, the Chief Minister explained that the government will provide a special incentive of Rs 289 per quintal for fine variety paddy, which elevates the total procurement price to Rs 2,750 per quintal. For common variety paddy, the state is providing a special incentive of Rs 159 per quintal, bringing the total procurement price to Rs 2,600 per quintal. In the case of sugarcane, the state incentive has been enhanced to Rs 709.50 per tonne, raising the total procurement price to Rs 4,000 per tonne.

Highlighting the unprecedented nature of the announcement, Chief Minister Vijay noted the historic scale of the financial increase. "Though the fiscal position of the state was not in an ideal shape, we decided to make this historic hike in incentives for paddy and sugarcane for the welfare of farmers," Vijay said. He pointed out that this is the first time in Tamil Nadu history that the state incentive for paddy has been increased by more than Rs 156 in a single year, and the incentive for sugarcane by more than Rs 134.

The announcement under Rule 110 was received with enthusiasm in the assembly, where treasury bench members welcomed the decision by thumping their desks. However, political reactions followed the Chief Minister's statement. PMK president Anbumani Ramadoss expressed that the hike was insufficient and demanded that the state government raise the paddy procurement price further to Rs 3,000 per quintal.