In a pivotal move to bolster the cooperative sector, the Gujarat State Government has officially approved a relief package of ₹1,500 crore for sugar cooperative societies. This decision, announced by Cooperation Minister Jitubhai Vaghani, aims to alleviate a long-standing financial burden affecting over 200,000 sugarcane farmers across the state. The relief addresses payments made by cooperative societies to farmers from the 2007-08 to 2014-15 seasons, which exceeded the Fair and Remunerative Price (FRP) set by the Central Government. The situation arose due to the Income Tax Department's previous classification of these excess payments as profits, resulting in substantial tax liabilities. The recent amendment to the Income Tax Act in 2023 permitted state governments to approve sugarcane prices for tax purposes, paving the way for this relief. Chief Minister Bhupendra Patel formed a high-level committee to review the matter, leading to this significant decision. Minister Vaghani expressed gratitude to key leaders for their support in resolving this issue, emphasizing the government's commitment to the welfare of farmers and the cooperative movement in Gujarat.