Goa sugarcane farmers to get only central fixed rate as state ends support
The Goa government has ended its Special Assistance cum Compensation Scheme for sugarcane farmers, effective since June 2021. Procurement will now follow the central Fair and Remunerative Price (FRP). The previous scheme, launched after the 2019 Sanjivani Sugar Factory closure, disbursed nearly ₹40 crore. A new support scheme will begin in 2026–27, aligned with national pricing policy.
The Goa government has officially discontinued the ‘Special Assistance cum Compensation Scheme’ for sugarcane farmers, which had been in effect since June 2021. Going forward, sugarcane procurement will be conducted at the Fair and Remunerative Price (FRP) set by the central government, as per a notification issued by Director of Agriculture Sandeep Fol Dessai.
Background of the Withdrawn Scheme
The scheme was launched in June 2021 to support farmers affected by the 2019 closure of the Sanjivani Sugar Factory in Dharbandora and provided compensation over five years, with nearly ₹40 crore disbursed to about 700 farmers.
The annual compensation rates declined each year:
- 2020-21: ₹3,000/MT (₹11.83 crore to 731 farmers)
- 2021-22: ₹2,800/MT (₹10.28 crore to 690 farmers)
- 2022-23: ₹2,600/MT (₹8.86 crore to 665 farmers)
- 2023-24: ₹2,400/MT (₹8.32 crore to 682 farmers)
New Procurement and Support Mechanism
FRP-Based Procurement: The state will now procure sugarcane at FRP rates fixed by the National Federation of Co-operative Sugar Factories Ltd., New Delhi, with no additional state aid.
New Scheme for 2026–27: To continue supporting cultivation, a new scheme, Assistance towards Sugarcane Supplied by the Sugarcane Growers—will be in force for two years starting in 2026–27.
Operational Details:
- Farmers must register with the Sanjivani Sugar Factory.
- Sugarcane will be weighed at the factory weighbridge, and payments will be made based on actual tonnage at FRP rates.
- Farmers are responsible for harvesting and transporting their produce to the factory at their own cost.
- Procurement will be managed by a government-appointed agency.
- Disputes will be resolved by the agriculture minister, whose decision will be final.
The original compensation scheme was introduced in response to the economic hardship caused by the closure of the Sanjivani Sugar Factory, which had operated for nearly five decades before shutting down due to persistent financial losses and insufficient local cane supply.
The government’s decision to end the special assistance aligns with efforts to streamline procurement and align prices with national policy, despite appeals from farmers to extend support until the factory is revived.
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Source : Herald Goa
