Punjab Government Makes History: Sugarcane Farmers’ Arrears Fully Cleared

June 27, 2026

The 2025-26 crushing season has proven historic in many respects for Punjab’s sugarcane farmers. Under the leadership of Chief Minister Bhagwant Singh Mann, the Punjab government set a new record by clearing 100 percent of the outstanding dues owed to sugarcane farmers.

Sugar mills across the state procured a record 167.20 lakh quintals of sugarcane, ensuring payments totaling ₹695.36 crore to the farmers. This achievement has not only strengthened the farmers’ economic standing but also highlighted the Punjab government’s farmer-friendly policies within the agricultural and cooperative sectors. Farmers have openly praised Chief Minister Bhagwant Singh Mann’s decision to ensure timely and full payment. This milestone reflects the Chief Minister’s unwavering commitment to farmer welfare, crop diversification, and rural prosperity. By encouraging farmers to move beyond the traditional wheat-paddy cycle and adopt sugarcane cultivation, the government has created new opportunities for agricultural growth while strengthening the rural economy.

Sugarcane cultivation and sugar mills play a pivotal role in generating employment and supporting thousands of farming families. To further boost agriculture, cooperative sugar mills have launched several farmer-friendly initiatives, including the supply of improved seeds, subsidized agricultural machinery, fertilizers, herbicides, and pesticides, as well as soil testing facilities, awareness camps, and training programs.

These efforts have contributed significantly to increasing production and bolstering farmers’ confidence in sugarcane cultivation. The Punjab government has also prioritized timely payments to farmers. All payments for sugarcane procured during the 2025-26 crushing season have been released, providing substantial financial relief to growers and further strengthening their trust in the government’s agricultural policies.

 Payments Restore Sugarcane Farmers’ Confidence: Pal Singh

Pal Singh the Sarpanch of Huthian village and a farmer associated with the Batala Sugar Mill, welcomed the Punjab government’s decision, stating, “I have been cultivating sugarcane for the past 30 years, and currently, I have 20 acres under sugarcane cultivation. We are linked to the Batala Sugar Mill; the mill, operating under the Punjab government, ensured that the funds reached the farmers’ accounts directly. Some farmers received ₹20 lakh, others ₹10 lakh, and some ₹15 lakh directly into their accounts.”

He added, “The payments deposited into our accounts have boosted the farmers’ morale. Previously, payments used to arrive in installments over time. Now, farmers have received their dues directly in their accounts, which has encouraged many of us to look beyond wheat and paddy and expand our sugarcane cultivation.”

Motivating Farmers to Take Up Sugarcane Cultivation: Lakhbir Singh

Lakhbir Singh from Alowal village, who has been associated with the mill since its inception, said, “Since Chief Minister Bhagwant Singh Mann assumed office, there has been significant improvement in crop payments. The decision to release full payments has brought a wave of happiness among the farmers associated with the Batala mill. Landowners have received their dues and are extremely satisfied.” He further remarked, “If sugarcane payments continue in this manner, farmers will be highly motivated to cultivate more sugarcane and remain associated with the mills. The mill has provided great relief to the farmers and strengthened their confidence.”

 Appreciating the contribution of the mill’s staff,

Lakhbir Singh said, “The mill’s officials and staff have worked with great dedication and helped make it one of the best-performing mills. Their efforts have played a pivotal role in achieving these results.” Commending the Punjab government, he further stated, “Chief Minister Bhagwant Singh Man has provided immense relief to farmers by ensuring that payments are transferred directly into their bank accounts on time. This has boosted the farmers’ confidence and encouraged them to continue sugarcane cultivation.”