Gujarat's Landmark Decision Brings ₹1,500 Crore Relief, Strengthens Cooperative Sugar Sector

Aug 01, 2026

Gujarat Government has announced a landmark financial relief package of nearly ₹1,500 crores for the cooperative sugar sector, bringing major support to sugarcane farmers and farmer-owned sugar mills. The decision follows the approval of sugarcane prices from 2007–08 to 2014–15 under recommendations of a high-level committee after the 2023 Income Tax Act amendments. The relief has eased financial pressure on cooperative factories, benefited over two lakh farmers, and strengthened the long-term stability of the sugar industry. Farmers and cooperative leaders welcomed the move, stating that it will prevent financial burdens, support future cultivation, and promote rural prosperity. The initiative reflects Gujarat’s commitment to farmer welfare and sustainable agricultural growth.