On May 26, 2026, the Gujarat government made a significant policy announcement aimed at supporting the state's cooperative sugar sector. The government officially approved the sugarcane prices paid by cooperative sugar mills to farmers for the period from 2007-08 to 2014-15. This decision is anticipated to provide approximately ₹1,500 crore in financial relief, effectively lifting a long-standing tax burden from the cooperative mills.
During the announcement, Jitu Vaghani, the Agriculture and Cooperation Minister, explained that the approval comes after the Income Tax Department categorized payments exceeding the Fair and Remunerative Price (FRP) as profits, leading to tax demands that created a liability for these mills. The formal recognition of these payments aims to clarify the financial practices within Gujarat’s cooperative sugar sector.
- Financial relief for sugar mills — The approval is expected to alleviate a ₹1,500 crore tax-related burden on cooperative mills.
- Registration for summer moong — The government has opened online registration for farmers to sell summer moong at the MSP of ₹8,768 per quintal.
- Mandatory registration process — Farmers must complete registration via biometric authentication to be eligible for MSP procurement.
The importance of this decision is underscored by recent legislative changes at the national level, particularly with the establishment of the Ministry of Cooperation. These amendments to the Income Tax Act in 2023 ensure that state-sanctioned sugarcane pricing structures receive tax recognition, thereby facilitating smoother operations for cooperative models.
In conjunction with the sugarcane pricing approval, the Agriculture Department has also initiated the registration process for summer moong sales, which will run from May 27 to June 10. Farmers will be required to register at e-Gram centres, and only those with updated land records will be eligible for procurement under the Minimum Support Price scheme. This comprehensive approach aims to ensure that farmers receive adequate support during the upcoming season, thus enhancing their livelihoods.
