Punjab continues to offer highest sugarcane price in country
Punjab Cabinet gives big relief to farmers with direct sugarcane subsidy and MSP-linked support
CM Bhagwant Singh Mann approves creation of 1,000 yoga trainer posts under ‘CM di Yogshala’
Civil hospitals in Badal, Khadur Sahib and Fazilka transferred to Baba Farid University of Health Sciences (Faridkot) to strengthen healthcare services
Green signal to urban governance reforms, approves policies on municipal land transfer and rastas–khals utilisation
CHANDIGARH, 20th January 2026:
Farmers stood at the centre of a high-performing Cabinet meeting on Tuesday as the Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, approved a ₹68.50 per quintal direct subsidy out of the fixed State Agreed Price (SAP) for sugarcane growers, reinforcing Punjab’s position as the state offering the highest sugarcane price in the country.
The decision was taken at a meeting of the Council of Ministers chaired by the Chief Minister, which also delivered a series of significant approvals spanning healthcare reform, public fitness initiatives and urban governance, underlining a decisive, outcomes-driven policy push by the government.
Disclosing the decisions taken by the Cabinet, the Chief Minister’s Office stated that the subsidy of ₹68.50 per quintal out of the fixed State Agreed Price will be paid directly to sugarcane farmers on behalf of private sugar mills for the crushing season 2025–26. Punjab already offers the highest State Agreed Price for sugarcane in the country at ₹416 per quintal, reflecting an increase of ₹15 from the previous year. This ensures that Punjab’s cane growers remain the best compensated in the country and the present decision will further strengthen income security for farmers.
As part of the Punjab government’s sustained focus on public health and wellness, the Cabinet also approved the creation of 1,000 additional posts of Yoga Trainers under the ‘CM di Yogshala’ project. It was stated that a budgetary provision of ₹35 crore will be made for this initiative during the financial year 2026–27, aimed at promoting a healthy and fit Punjab.
In another key decision to strengthen healthcare services, the Cabinet approved the complete transfer of Civil Hospitals at village Badal in Muktsar district, Khadur Sahib in Tarn Taran district, Community Health Centre Jalalabad, and the Tertiary Care Centre in Fazilka district to Baba Farid University of Health Sciences (BFUHS), Faridkot. The transfer will enable residents of these areas to access improved treatment and diagnostic services, leveraging the university’s advanced medical infrastructure and expertise.
The Cabinet also accorded approval for formulation and notification of directives under Section 4 of the Punjab Management and Transfer Municipal Act, 2020, to facilitate the transfer of municipal properties belonging to Punjab government departments, boards, corporations, and other public sector undertakings for public purposes. This decision is expected to give fresh momentum to development projects across the state, ensure uniformity in land allocation, and prevent misuse of public land. A committee headed by the Deputy Commissioner of the concerned district will recommend the allotment process, subject to approval by the state government.
To accelerate development through optimal utilisation of land resources, the Cabinet approved a policy for transfer by sale or exchange of abandoned and active paths (rastas) or water courses (khals) located within all government-licensed projects inside municipal limits. This policy is aimed at unlocking stalled development potential and improving urban planning outcomes.
The Cabinet also approved extension of the time period for PAPRA (Punjab Affordable Property Registration Act) licensed projects by one year, from January 1, 2026 to December 31, 2026. The extension will be granted at an extension fee of ₹25,000 per acre per year, for a maximum period of up to three years, and will be allowed by the concerned competent authorities on the same terms and conditions applicable earlier.
In another decision relating to urban development, the Cabinet approved the formula used for calculation of charges for additional Floor Area Ratio for properties proposed to be put up for auction from January 2026 onwards. It also approved amendments to Para 10.2 of the E-Auction Policy 2025, notified on February 20, 2025, making the revised provisions applicable to all categories of properties to be auctioned by development authorities in future.
The Cabinet further approved amendments to the Punjab Civil Services (General and Common Conditions of Service) Rules, 1994, by inserting Rule 6A. The amendment stipulates that the cut-off date for determining eligibility criteria, including minimum educational and other qualifications, shall be the last date for submission of application forms, unless specifically provided otherwise in the relevant service rules.
In a forward-looking move to promote crop diversification, the Cabinet also approved collaboration with the Japan International Cooperation Agency for introducing Japanese technology to strengthen Punjab’s horticulture sector. The collaboration will focus on horticulture development, cold chain infrastructure, water management, and skill development, with the objective of doubling the share of horticulture in Punjab’s economy.
