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Agricultural Minister Announces One‑Time Settlement and Sugar Price Guarantees

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News Analysis IndiaReporter
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September 7, 2026
06:13 PM
Agricultural Minister Announces One‑Time Settlement and Sugar Price Guarantees

Chandigarh – In a significant development on September 7, Agriculture Minister Gurmeet Singh Khudian delivered a comprehensive statement outlining new measures aimed at addressing farmer grievances in Punjab. The announcement came after the chief minister’s office provided a written assurance that incorporated the main demands of farmer unions.

Key highlights of the written pledge include a promise by the Punjab government to convene a special legislative session within a month to pass bills on critical matters and forward them to the centre. The agenda covers a reassessment of historic water‑allocation pacts deemed unconstitutional, the cancellation of sections 78, 79 and 80 of the Punjab Reorganisation Act to restore state water rights, the repeal of the Dam Safety Act, and the withdrawal of the Seed Bill 2025.

Emphasising the government's dedication to the agricultural community, Khudian said, "We believe in resolving issues through dialogue and mutual understanding. Our administration has recorded the farmers' rightful demands in writing with full transparency."

To mitigate the financial burden on cultivators, the minister introduced a one‑time settlement (OTS) policy targeting overdue loans, especially those from Punjab State Cooperative Bank and related cooperative societies. A cross‑party committee will be tasked with drafting the OTS framework, ensuring that the scheme effectively reduces the debt load on farmers.

The minister also reaffirmed Punjab’s commitment to maintaining the highest sugarcane prices in the country. He directed that the pricing file be submitted on Monday to avoid any delays in implementation. Furthermore, the government pledged prompt settlement of dues owed by private sugar mills to farmers, extending the "one‑window, one‑payment" mechanism currently applied to cooperative mills.

To deal with remaining concerns, a joint committee will be established, comprising senior state officials and elected representatives of farmer unions. This committee will investigate pending issues and work towards swift resolution.

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