Gujarat clears ₹7.14 crore sugarcane dues for 850 tribal farmers before Diwali
Synopsis
Key Takeaways
The Gujarat government on 6 November 2026 announced it will disburse ₹7.14 crore in outstanding sugarcane payments to more than 850 farmers in the state's tribal belt before Diwali, providing relief to growers who had been awaiting dues from a cooperative sugar mill. The funds will be credited directly to the farmers' bank accounts.
Who Is Affected and What Triggered the Intervention
The farmers in question supply sugarcane to Shri Ukai Pradesh Sugar Industry Cooperative Society Limited, widely known as Vyara Sugar, located in Gujarat's tribal region. The cooperative mill had been unable to clear payments on time, leaving hundreds of farming families without income ahead of the festive season.
The state government stepped in under the supervision of Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi after the issue was flagged by tribal representatives and ministers.
What the Government Said
Spokesperson Minister Jitu Vaghani confirmed the decision, stating: 'The state government has made the necessary arrangements to directly pay around ₹7.14 crore towards outstanding sugarcane dues to more than 850 farmers. The amount will be credited to their bank accounts before Diwali.'
Vaghani added that 'the government remained committed to supporting farmers and ensuring that they received due payment for their produce.'
Role of Tribal Leaders and Ministers
The intervention followed concerted efforts by Tribal Development Minister Naresh Patel, Minister of State Jayram Gamit, and former minister Ganpat Vasava, along with other tribal community leaders, to bring the pending dues issue to the government's attention and press for a resolution.
Significance for Tribal Farming Families
Sugarcane cultivation is a primary livelihood for many households in Gujarat's tribal belt, making delayed cooperative payments particularly disruptive. The direct bank transfer mechanism is intended to bypass administrative bottlenecks that have historically slowed such disbursements. Notably, the timing — ahead of Diwali — means families can meet festive expenses without the burden of unpaid dues.
The release of these arrears is expected to restore confidence among tribal sugarcane growers in the cooperative system, though questions about the mill's longer-term financial health and payment regularity are likely to persist.