Farmers in Uttar Pradesh's Pilibhit district are facing a severe financial crisis, with unpaid sugarcane dues crossing a staggering Rs 220 crore mark barely 50 days into the 2025-26 crushing season. Official data from the district cane department, released on Sunday, paints a grim picture of delayed payments across the region's four operational sugar mills.
Mounting Arrears Across Cooperative and Private Mills
The district's payment records reveal a widespread failure to compensate farmers on time. The most egregious case is that of the privately owned Bajaj Hindusthan Sugar Mill in Barkhera. This unit has not cleared arrears of approximately Rs 30 crore from the previous season and, shockingly, has not paid a single rupee for the cane procured in the current season that began on November 15, 2025.
According to the official figures, the Barkhera mill has purchased 27.6 lakh quintals of sugarcane valued at Rs 109.3 crore since operations commenced. However, as of January 4, 2026, growers had received no payment. Under the UP Sugarcane (Regulation of Supply and Purchase) Act, mills are legally bound to pay the cane price within 14 days of procurement. Failure to do so makes them liable to pay interest for the delay.
Despite a state mechanism that earmarks 85% of the sale value of sugar and by-products like molasses and ethanol for cane payments, no substantial administrative action has been initiated against the Barkhera mill for its non-payment this season.
A Breakdown of Mill-Wise Payment Delays
The crisis is not confined to one mill. The payment performance of the cooperative sector units is also deeply concerning:
- Kisan Cooperative Sugar Mill, Bisalpur: This government-run mill procured 7.8 lakh quintals worth Rs 35 crore but has paid only Rs 8 crore to farmers, leaving arrears of Rs 26.9 crore.
- The second cooperative mill has cleared a mere 39.7% of its dues. It bought 8.9 lakh quintals valued at Rs 34 crore, paid Rs 9.5 crore, and owes Rs 24.5 crore.
A relatively better, though still deficient, record was shown by the private LH Sugar Mill in Pilibhit city. It procured a massive 68.8 lakh quintals of cane worth Rs 269.9 crore. By January 4, it had paid Rs 210.4 crore, but outstanding dues still stand at a significant Rs 59.5 crore.
Official Inaction and Farmer Anger
When questioned about the persistent delays, District Cane Officer KR Bhargav stated that legal action against the Barkhera mill and its management would be taken once directions are received from state-level officials. This response has done little to assuage the growing anger among the farming community.
Farmer leaders have launched sharp criticism against the state government for the mounting arrears. VM Singh, national convener of the Rashtriya Kisan Majdoor Sangathan, and Gurdeep Singh, district president of the Bhartiya Kisan Union's youth wing, jointly accused the administration of failing to protect farmers' lawful interests. They alleged that policy decisions continue to favour mill owners, forcing cane growers to endure the hardship of delayed payments.
The situation highlights a systemic failure in enforcing payment regulations, leaving thousands of farmers in Pilibhit in a precarious financial position at the peak of the harvesting season.
