The sugarcane farmers - under the banner of the Bhartiya Kisan Union (Lakhowal) - had gathered outside a Gurdwara in Mohali before heading towards Chandigarh.
However, the police stopped them at the Chandigarh-Mohali border. The farmers have been protesting against the Congress-led government for the non-payment of dues.
Denied permission to enter Chandigarh, the farmers squatted on the road near the YPS Chowk in Mohali.
"We have been demanding that sugarcane farmers should be paid Rs 100 crore which has been due for the past several months," Lakhowal said.
A delegation of the farmers later met Suresh Kumar, the chief principal secretary to the Punjab CM. "During the meeting, no assurance was given to us for the payment of dues," he said.
A large number of police personnel were deployed in the area. Water canon vehicles were also stationed nearby.
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