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Crushing season ends, Punjab cane growers still await ₹250-crore dues
Punjab's sugarcane crushing season ended in March 2026 with mills shutting down early, but cane growers still await about ₹250 crore in state subsidy payments to private mills. In the cooperative sector, some disbursements have been made, yet substantial dues remain, highlighting ongoing liquidity pressures for farmers.
Why It Matters
Delayed subsidy payments affect farmers' income and the viability of Punjab's cane sector, even as the state maintains a high SAP to private mills. Timely disbursement is crucial for farmer livelihoods and sector stability.
Timeline
8 Events
Article publication date
May 6, 2026
The article reporting these details was published on May 6, 2026.
Farmers' critique of SAP versus production costs
May 6, 2026
Farmers say the SAP does not cover rising input costs, with one farmer noting the cost of producing a quintal is at least ₹450 and urging the SAP be fixed above production costs.
Punjab’s sugarcane cultivation area
March 2026
Sugarcane is cultivated on approximately 1.25 to 1.3 lakh hectares in Punjab annually.
Subsidy progress reported by cane commissioner
March 2026
Cane commissioner Amrik Singh said ₹62 crore has been sanctioned towards subsidy payments for private mills, while an additional ₹172 crore has been requisitioned for approval.
Punjab SAP and subsidy policy for private mills
March 2026
Punjab fixed the state advised price (SAP) at ₹416 per quintal and provides a subsidy of ₹68.5 per quintal to private mills to help meet the SAP.
Operational status of mills during the season
March 2026
Six of seven private mills operated during the season (including units in Mukerian, Dasuya, Keeri Afgana, Butter Sevian and Amloh); the Dhuri mill remained closed for the third consecutive year. In the cooperative sector, nine mills—Morinda, Budhewal, Nawanshahr, Nakodar, Fazilka, Bhogpur, Gurdaspur, Batala and Ajnala—were operational.
Payment status for private and cooperative mills as season ends
March 2026
Officials said private mills paid around ₹1,000 crore to farmers, with about ₹250 crore still due; in the cooperative sector, ₹392 crore has been disbursed, while about ₹303 crore remains unpaid.
End of the sugarcane crushing season in Punjab
March 2026
The sugarcane crushing season in Punjab concluded in March 2026, with mills ceasing operations by then.