I advise you to run sftp with -v option. It becomes much easier to fathom what is happening.
The manual clearly states:
The final usage format allows for automated sessions using the -b option. In such cases, it is necessary to configure non-interactive authentication to obviate the need to enter a password at connection time (see sshd(8) and ssh-keygen(1) for details).
In other words you have to establish a publickey authentication. Then you'll be able to run a batch script.
P.S. It is wrong to put your password in your batch file.