Payment for ethanol procured from all suppliers, including cooperative sugar mills, is being disbursed within the stipulated 21-day timeframe. No delays or differential treatment compared to private sugar mills have been reported. Cooperative sugar mills can access working capital through bank loans, institutional finance, and internal resources. The National Cooperative Development Corporation (NCDC) has also reduced its floating interest rate on working capital loans to improve availability for these mills. This information was provided by Union Minister for Home and Cooperation, Shri Amit Shah, in a written response to the Rajya Sabha.
Key Entities Referenced
Ministry of Cooperation: The government ministry responsible for cooperative development and related policies.
National Cooperative Development Corporation (NCDC): A statutory corporation under the administrative control of the Ministry of Cooperation, providing financial assistance for cooperative enterprises.
Shri Amit Shah: Union Minister for Home and Cooperation, who provided the information in Rajya Sabha.
Rajya Sabha: The upper house of the Indian Parliament, where the information was presented.
Ministry of Cooperation
Ethannol procurement parity for sugar mills
Posted On: 11 MAR 2026 5:26PM by PIB Delhi
As per ethanol procurement terms and conditions, payment is being released to all ethanol suppliers,
including cooperative sugar mills supplying to Public Sector Oil Marketing Companies, within the
stipulated time frame of 21 days. No instance of delayed payment/differential treatment vis-à-vis private
sugar mill has been reported.
Cooperative Sugar Mills operating distillery units can meet their working capital requirements through
bank borrowings and institutional finance besides utilizing their internal resources. Additionally, National
Cooperative Development Corporation (NCDC), a statutory corporation under the administrative control
of Ministry of Cooperation, has reduced its floating rate of interest for working capital loans to ensure
easy working capital availability for the cooperative sugar mills.
This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written
reply in Rajya Sabha.
******
AK/AP
(Release ID: 2238354) Visitor Counter : 111
Read this release in: ही , Marathi