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Punjab Cabinet approves Rs 68.50 per quintal sugarcane subsidy to farmers, collaboration with Japan for crop diversification

Finance Minister Harpal Cheema announced the creation of 1,000 additional posts for yoga trainers under the ‘CM di Yogshala’ project.

Punjab Finance Minister Harpal CheemaPunjab Finance Minister Harpal Singh Cheema announced the Cabinet decisions (File photo).

The Punjab Cabinet Tuesday approved a direct subsidy of Rs 68.50 per quintal, out of the fixed state-agreed price (SAP) for sugarcane growers, making it the state offering the highest sugarcane price in the country.

Finance Minister Harpal Cheema, while briefing the media about the decision, said the AAP government’s move would go a long way in encouraging diversification. He stated that the subsidy of Rs 68.50 per quintal from the fixed SAP will be paid directly to sugarcane farmers on behalf of private sugar mills for the 2025–26 crushing season.

Punjab already offers the highest SAP for sugarcane in the country at Rs 416 per quintal, up from Rs 401 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, a government statement said.

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 to double horticulture’s share in Punjab’s economy.

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 Rs 35 crore will be made for this initiative during the financial year 2026–27, aimed at promoting a healthy and fit Punjab.

Healthcare measures

In another decision to strengthen healthcare services, the Cabinet approved the complete transfer of civil hospitals at village Badal in Muktsar district, Khadoor 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. Cheema said earlier that these were under government control.

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Transfer of municipal properties

The Cabinet also accorded approval for the 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 district concerned will recommend the allotment process, subject to approval by the state government.

Land resources utilisation

To accelerate development by optimising the utilisation of land resources, the Cabinet approved a policy for the transfer, by sale or exchange, of abandoned and active paths (rastas) or water courses (khals) located within all government-licensed projects within municipal limits. This policy aims to unlock stalled development potential and improve urban planning outcomes.

The Cabinet also approved the extension of the time period for PAPRA (Punjab Affordable Property Registration Act) licensed projects by one year, from January 1 to December 31. The extension will be granted at an extension fee of Rs 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. Earlier, it was Rs 10,000 per year and was renewed each year.

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In another decision relating to urban development, the Cabinet approved the formula for calculating charges for additional floor area ratio (FAR) for properties proposed 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.

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