Gujarat clears ₹7.14 crore sugarcane dues for 850 tribal farmers before Diwali
Synopsis
More than 850 tribal sugarcane farmers in Gujarat were left waiting on dues by a cooperative mill — until the state intervened ahead of Diwali. The government will now directly credit ₹7.14 crore to their bank accounts, a timely move that bypasses the struggling Vyara Sugar cooperative and puts cash in farming households just before the festive season.
Key Takeaways
The Gujarat government will disburse ₹7.14 crore in pending sugarcane dues before Diwali 2026 .
More than 850 farmers in Gujarat's tribal belt, supplying to Vyara Sugar cooperative, will benefit.
The funds will be transferred directly to farmers' bank accounts , bypassing the cooperative.
The decision was taken under the supervision of Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi .
Tribal Development Minister Naresh Patel , Minister of State Jayram Gamit , and former minister Ganpat Vasava played a key role in escalating the issue.
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.
Point of View
Not structural reform. Vyara Sugar's inability to clear dues on time points to deeper financial stress within Gujarat's cooperative sugar sector, an issue that a one-time pre-Diwali disbursement does not resolve. Tribal sugarcane farmers in this belt are chronically vulnerable to cooperative mismanagement, and the government's repeated need to intervene suggests that oversight of cooperative mills requires a systemic fix, not seasonal relief packages. The political optics are clear: relief before a major festival is good governance optics for the ruling party in a tribal constituency — but the harder question of cooperative viability goes unanswered.
NationPress
7 Nov 2026
Frequently Asked Questions
Why are Gujarat's tribal sugarcane farmers receiving ₹7.14 crore from the government?
The Gujarat government is releasing ₹7.14 crore directly to over 850 farmers because the Vyara Sugar cooperative mill was unable to clear outstanding payments for their sugarcane produce on time. The state intervened to ensure farmers received dues before Diwali.
Which cooperative mill owes money to the farmers?
The dues are owed by Shri Ukai Pradesh Sugar Industry Cooperative Society Limited, popularly known as Vyara Sugar, located in Gujarat's tribal belt.
How will the money reach the farmers?
The ₹7.14 crore will be transferred directly to the bank accounts of the affected farmers before Diwali, bypassing the cooperative to ensure timely payment.
Who supervised the relief decision?
The intervention was made under the supervision of Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, following efforts by Tribal Development Minister Naresh Patel, Minister of State Jayram Gamit, and former minister Ganpat Vasava.
Does this resolve the underlying problem with Vyara Sugar?
The disbursement addresses the immediate dues but does not resolve the cooperative mill's underlying financial difficulties that led to the payment delay. The longer-term viability of the cooperative remains an open question.
