Punjab Cabinet Approved Highest Sugarcane Subsidy in India | 22 Jan 2026

Why in News? 

The Punjab Cabinet has approved a ₹68.5 per quintal sugarcane subsidy, the highest in the country, for the 2025–26 sugarcane crushing season. 

Key Points 

• State Agreed Price (SAP): Punjab has fixed the SAP at ₹416 per quintal, which is also the highest sugarcane price in the country. 
• Payment Mechanism: The subsidy amount will be paid directly to farmers. 
  • Easing the financial burden on private sugar mills and ensuring timely payments. 
• Objectives: To boost farmers’ income 
  • Provide financial security 
  • Ensure timely payments to sugarcane farmers 
  • Strengthen agro-based industries 
• Agricultural Significance: Sugarcane is an important cash crop in Punjab, supporting rural livelihoods and agro-based industries. 
• Fiscal Commitment: The move reflects the state’s commitment to agricultural welfare and price support mechanisms for farmers. 
• National Comparison: With the combined effect of SAP + subsidy, Punjab offers the highest sugarcane remuneration in India.