The Gujarat government has approved significant financial and policy measures for the cooperative sugar sector and opened registration for farmers to sell summer moong at the Minimum Support Price (MSP). This move aims to provide relief to over two lakh farmers and cooperative institutions in the state. The decision grants official approval to sugarcane prices paid by cooperative sugar mills to farmers between 2007-08 and 2014-15, relieving a tax-related burden of around Rs 1,500 crore.
The Income Tax Department had previously treated payments made above the Fair and Remunerative Price (FRP) as profit, leading to tax demand notices for several cooperative sugar mills. By formalizing these payments as revenue-sharing practices in the cooperative model, the approval is expected to benefit Gujarat’s cooperative sugar mills. Gujarat’s sugar cooperatives have been distributing earnings from by-products like molasses, ethanol, and co-generated electricity to farmers, ensuring better returns for sugarcane growers compared to other states.
The Ministry of Cooperation, under the leadership of Narendra Modi and Union Home and Cooperation Minister Amit Shah, made amendments to the Income Tax Act in 2023. These changes allowed state-approved sugarcane pricing structures to be recognized for tax purposes. Following this, a high-level committee recommended the formal approval of payments made during the specified period. Additionally, the Agriculture Department has initiated online registration for the procurement of summer moong under the MSP scheme for the 2025-26 season.
Registration for summer moong procurement will take place from May 27 to June 10 at e-Gram centers across Gujarat, requiring biometric fingerprint or face authentication. Farmer registration is mandatory for MSP procurement, with only land parcels under registered survey numbers considered eligible. Farmers are advised to update their land records before applying, with registration possible through the ‘Farmer Registry Gujarat’ mobile app, government portal, CSC centers, VCE operators, or village-level agriculture staff. The Central government has set the MSP for summer moong at Rs 8,768 per quintal for the upcoming season, ensuring farmers receive the minimum support price.
