The Punjab cabinet on Tuesday approved a direct subsidy of ₹68.5 per quintal for sugarcane farmers for the 2025-26 crushing season. The subsidy will be paid directly to growers on behalf of private sugar mills and will be in addition to the state advised price (SAP) of ₹416 per quintal, which remains the highest in the country.
The decision was taken at a meeting of the council of ministers chaired by chief minister Bhagwant Mann. The state offers the highest SAP for sugarcane in the country at ₹416 per quintal, an increase of ₹15 from the previous year. The cane crushing season began in December last year.
This season sugarcane was sown over one lakh hectares, particularly in Gurdaspur, Jalandhar and Hoshiarpur districts of the state. One-third of the total area under the crop falls in the border district of Gurdaspur.
Last year, the government fixed the state advice price (SAP) of ₹401 per quintal and had promised that it would pay the difference between fair and remunerative price (FRP) and SAP to the farmers who had taken their produce for crushing at the six privately owned mills in the state.
Nod to transfer of municipal properties
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 the Punjab government departments, boards, corporations, and other public sector undertakings for public purposes. By doing so, the cash-strapped government plans to mop up earnings.
A committee headed by the deputy commissioner of the district concerned will recommend the allotment process, subject to approval by the state government.
Last year, the government asked all departments and boards and corporations to list the properties they own. The properties will be developed under the optimum utilisation of vacant government lands (OUVGL) scheme.
The government had to roll back the OUVGL scheme after its land pooling scheme faced resistance from farmers and the opposition parties. The government has not revealed the properties it had identified and its tentative cost.
The 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, was also approved in the meeting. The extension will be granted by paying a fee of ₹25,000 per acre per year for a maximum period of up to three years and will be allowed by the competent authority.
Urban development measures
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.
In another move related to the agriculture sector, and to promote crop diversification, the cabinet 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 the state’s economy.
1,000 yoga trainers to be recruited
As part of the state government’s focus on public health and wellness, the cabinet 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.
Nod to transfer 3 civil hospitals to BFUHS
The cabinet gave approval for the transfer of civil hospitals at village Badal, Muktsar, Khadoor Sahib, Tarn Taran, 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.
Sale of abandoned waters courses
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 amendments to the Punjab Civil Services (General and Common Conditions of Service) Rules, 1994, by inserting Rule 6A, were also approved. 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.