Pilibhit farmers protest over pending sugarcane payments and closed mill

Pilibhit: Farmers staged a protest march towards the residence of Minister of State for Sugarcane Development and Sugar Mills, Sanjay Singh Gangwar, in Pilibhit on Saturday, demanding "payment of pending sugarcane dues" and the reopening of the Majhola Cooperative Sugar Mill.

City Magistrate Vijay Vardhan Tomar said some farmers from Nawabganj gathered near the minister's residence seeking the release of payments from a sugar factory, which has been closed for some years. He added that the pending dues will be cleared after the auction related to the company is completed.

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"They demanded payment from the Oswal factory, which closed three-four years ago, be released. The payment will be made after the auction is completed. Secondly, they wanted the payment from a Barkhera-based sugar factory that is being delayed. The Minister has assured them that the issue will soon be resolved," he said.

Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said in April that India's sugar production has increased by around 8 per cent in the ongoing sugar season (SS 2025-26), reaching 274.8 lakh tons as of April 15, compared to 254.96 lakh tons during the same period last year.

ISMA said Uttar Pradesh has produced 89.26 lakh tonnes, slightly lower than 91.10 lakh tons recorded in the corresponding period last year.

Deepak Ballani, Director General of the Indian Sugar & Bio-energy Manufacturers Association (ISMA), said earlier this week that there is scope for improvement in sugar realisations as current ex-mill sugar prices in major producing states remain below production costs.

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Speaking with ANI, Ballsaid ex-mill sugar prices in Uttar Pradesh are around Rs 41-41.50 per kg, while prices in Maharashtra are close to Rs 39 per kg, against an estimated production cost of about Rs 42 per kg.

"We still have scope of increasing the sugar price because unless the mill realises the right value of sugar, it will be difficult to pay farmers on time," Ballani said.

He noted that sugar prices have remained largely stable despite restrictions on exports and added that sugar inflation over the past decade has been among the lowest compared to other commodities.

According to Ballani, retail sugar prices are currently hovering around Rs 46.50-47 per kg. He added that whenever the Fair and Remunerative Price (FRP) of sugarcane is increased, there should be a corresponding rise in sugar realisations to maintain the financial viability of mills and ensure timely payments to farmers.