Chandigarh: To ensure economic viability of Private Sugar Mills and timely cane payment of State Agreed Price (SAP) to the farmers for the Crushing Season, 2021-22, the Cabinet also gave approval to provide the financial assistance @ Rs.35 per quintal to the sugarcane farmers out of SAP on behalf of Private Sugar Mills for the Crushing Season, 2021-2022. This amount would be deposited directly into the bank accounts of sugarcane farmers on behalf of sugarcane in all respects as per SAP fixed by the State Government.
Pertinently, a meeting was held under the Chairmanship of Chief Minister Charanjit Singh Channi on November 1, 2021 in which it was decided that out of increase of Rs. 50 per quintal of sugarcane price, the private sugar mills shall pay 30 percent i.e. Rs. 15 per quintal and rest 70 percent of the increased SAP i.e. Rs. 35 per quintal would be transferred directly into the band accounts of the cane growers by the Punjab Government on behalf of the sugar mills.