State regulations in Uttar Pradesh stipulate that sugarcane farmers must receive full payment for their crops within 15 days of delivery, with sugar mills mandated to pay interest on any overdue amount past that deadline. However, ground realities in Saharanpur district show that local sugar mills are routinely failing to adhere to these official guidelines. Area sugarcane growers report receiving neither their principal payments within the mandated fortnight nor any interest for delayed disbursements, forcing them to wait several months to collect their earnings.
Over 100 Crore Rupees Owed by Defaulter Sugar Mills
Pending dues owed to sugarcane farmers across the Saharanpur region have accumulated to massive proportions, exceeding 1 billion rupees or more than 100 crore rupees in total. The largest share of this unpaid debt belongs to Ganganouli Bajaj Sugar Mill in Saharanpur, which owes farmers 98 crore 45 lakh rupees. Additionally, Gagalhedi Sugar Mill accounts for an outstanding balance of 2 crore 54 lakh rupees. Another sugar mill within the wider Saharanpur division also carries unpaid liabilities running into crores of rupees. These unpaid amounts are not recent delays but have remained pending since 2025 and 2026.
Ground Reality of the 15-Day Payment Rule and Interest Clause
Aggrieved sugarcane growers have repeatedly engaged with district administration officials and staged organized protests to demand their legal dues. Despite these efforts, farmers report receiving little beyond temporary assurances, while sugar mill operators continue to release payments at their own discretion. Although official policies dictate that delayed payments must accrue interest after 15 days, farmers emphasize that this requirement exists only on paper and has yielded zero financial interest in practice.
Why Sugarcane Acts as a Fixed Deposit for Local Farmers
Agriculture officials explain that sugarcane functions like a Fixed Deposit for regional farmers due to its guaranteed pricing structure. Unlike traditional food crops where market rates fluctuate unpredictably, sugarcane offers a fixed, pre-announced price that gives growers financial certainty. Encouraged by this predictable revenue stream, farmers in Saharanpur division have expanded their cultivation area. This expansion has effectively offset previous land reductions caused by highway development projects across the district.
Adoption of Agricultural Drones and Administration's Payment Assurance
The cane development department reports that overall sugarcane acreage in Saharanpur division has remained stable compared to previous seasons, with higher crop productivity projected for the current harvest. To optimize yield, the administration has deployed a fleet of 36 agricultural drones to spray fertilizers and pesticides across sugarcane fields throughout the division. Field officers are actively gathering direct feedback from farmers to ensure higher output. Deputy Cane Commissioner Om Prakash Singh assured that administrative steps are underway to ensure the pending dues for 2025 and 2026 are cleared for farmers as soon as possible.
