Union Home and Cooperation Minister Amit Shah informed the Lok Sabha in a written reply that there are 229 functional Cooperative Sugar Mills (CSMs) across the country, collectively contributing around 30% of India’s total sugar production.
He stated that CSMs face various financial challenges, including servicing existing term loans and working capital loans. To enhance their viability, it is necessary for them to generate additional revenue through ethanol production, which would improve profitability.
Shah highlighted that under the National Policy on Biofuels – 2018, as amended in 2022, the target for 20% ethanol blending in petrol (EBP-20) has been advanced from 2030 to the Ethanol Supply Year (ESY) 2025–26. To meet this target, Public Sector Oil Marketing Companies (OMCs) will require 1,120 crore litres of ethanol.
The Minister noted that the sugar industry is one of India’s largest agri-based processing sectors, supporting around five crore sugarcane farmers (Ganna Kisan) and their dependents.
By its value-added nature, sugar plays a significant role in economic and social development in rural areas, being closely linked to the welfare of farmers and the rural population.
