The ₹5,000-per-quintal maximum sale price directive issued to sugar mills in Uttar Pradesh’s Bijnor district has been withdrawn, bringing an abrupt reversal to the district administration’s earlier move to control sugar prices.
In a fresh letter issued on September 3, 2026, Bijnor District Cane Officer B.K. Patel said the earlier office letter, numbered 2067/C/Kra and issued on the same day, had been issued “erroneously” and was therefore being cancelled with immediate effect.
₹5,000 Price Cap No Longer Applicable
The earlier order had directed all sugar mills in Bijnor not to sell sugar at a rate exceeding ₹5,000 per quintal. It had also warned that mills violating the directive could face action under Sections 3 and 7 of the Essential Commodities Act, 1955.
However, with the withdrawal of letter No. 2067, the ₹5,000-per-quintal ceiling is no longer applicable in Bijnor. The latest communication specifically states that the earlier letter was issued erroneously and cancels it with immediate effect.
Order Issued After Virtual Review Meeting
The original directive was issued by the Bijnor District Cane Officer following a virtual review meeting conducted on September 3 by the Additional Chief Secretary of the Sugar Industry and Cane Development Department, Uttar Pradesh.
However, the sugarcane department did not issue a formal order authorising the district-level price cap. This led to questions within the sugar industry and trading community over the legal and administrative basis for fixing the sale price of sugar at the district level.
Sugar Industry and Traders Raised Concerns
The ₹5,000-per-quintal directive triggered concerns among sugar mills and traders, particularly over whether a district-level officer could prescribe a maximum selling price for sugar.
Industry stakeholders also questioned the reference to Sections 3 and 7 of the Essential Commodities Act in the letter. The controversy subsequently reached officials at the state and central levels, prompting scrutiny of the directive.
The withdrawal letter has now clarified that the earlier communication itself was issued erroneously and has no continuing effect.
Farmers Had Also Opposed the Price Restriction
The earlier order had also drawn criticism from farmer organisations. Chaudhary Digambar Singh, Young State President of the Bharatiya Kisan Union (Arajnaitik), had opposed the restriction on sugar prices, describing it as contrary to farmers’ interests.
He had argued that imposing excessive restrictions on sugar prices could ultimately affect sugarcane farmers, particularly at a time when input costs, fuel prices and other expenses faced by farmers remain high.