As per government sources, these improvements are expected to streamline operations and benefit local growers directly.
Punjab Raises Sugarcane Price to INR 416/Quintal; CM Mann Inaugurates Modern Mill & 28.5 MW Power Plant
The Punjab government under Chief Minister Bhagwant Singh Mann has increased the state-advised price (SAP) for sugarcane by INR 15 per quintal. It brings the new rate to INR 416 per quintal for the 2025–26 crushing season. According to the Chief Minister, this makes Punjab the highest sugarcane-paying state in the country, slightly ahead of neighbouring states.
The announcement was made during the inauguration of a newly modernised sugar mill and a 28.5-megawatt co-generation plant at Dinanagar in Gurdaspur district. Officials from the Punjab government stated that with the new facility, the mill’s capacity has been expanded drastically—from the older 2,000 tonnes crushing per day (TCD) to 5,000 TCD, aiming to handle the region’s abundant cane output.
The Chief Minister explained that this expansion is not only about paying more for cane; it's about transforming processing infrastructure, improving sugar quality, and cutting farmers’ time and transport costs by reducing reliance on far-off private mills. As per government sources, these improvements are expected to streamline operations and benefit local growers directly.
A new sulphur-free (sulphurless) refined sugar brand, “Fateh Sugar”, was also launched. According to Punjab government officials, this underscores the state’s intention to promote clean, high-quality produce and tap new markets.
Further, the co-generation power plant is expected to export surplus electricity—about 20 MW—to the state’s power utility each crushing season, generating roughly INR 20 crore in annual revenue. Government statements suggest that this revenue stream may help make the mill financially sustainable while also creating direct and indirect employment opportunities in the region.
As per administrative sources, the number of sugarcane suppliers (i.e., growers delivering cane to the mill) is projected to rise sharply—from about 2,850 to over 7,000 growers. For many farmers, especially in border-district areas, this could mean improved income stability and reduced dependency on distant mills.
By raising the SAP and upgrading the state’s processing capacity, the Punjab government is signalling a renewed commitment to farmer welfare — promoting crop diversification, strengthening cooperative agro-industry, and combining agriculture with clean energy and industrial growth. Officials said this initiative is expected to have a long-term positive impact on the state’s agricultural economy.
For thousands of farming families, this isn’t just a headline: it may well be the start of a more secure, sustainable and prosperous season.
