**Executive Summary**
This document summarises the Ministry of Cooperation's response to Unstarred Question No. 599 in the Lok Sabha, regarding the operational and financial status of Cooperative Sugar Mills (CSMs) across India. The response, dated February 3rd, 2026, focuses on the "Central Sector Scheme-Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills" and its impact. The Ministry conducted a third-party evaluation of the scheme.
**Key Points / Main Content**
* **Assessment of Cooperative Sugar Mills (CSMs)**
* Of the 312 CSMs across the country, 102 were found to be non-functional through a third party evaluation.
* The Ministry is working with concerned states to revive viable non-functional mills.
* **Central Sector Scheme-Grant-in-aid to NCDC**
* The Central Government provided a grant of ₹1000 Cr. to NCDC to enable loans of ₹10,000 Cr. to CSMs.
* NCDC has disbursed ₹10,005 Cr. to CSMs under the scheme.
* ₹251.40 Cr. disbursed for ethanol plants.
* ₹97.12 Cr. disbursed for Cogen power.
* ₹9656.90 Cr. disbursed for working capital.
* 56 Cooperative Sugar mills have benefitted under the scheme.
* **Impact of NCDC Assistance**
* NCDC assistance offered relatively lower interest rates compared to other financial institutions.
* It set a benchmark for transparency, documentation and easy access to finance for CSMs.
* Outstanding Cane bills reduced significantly, indicating smoother business operations and timely payout to farmers & workers.
* **Scheme Implementation**
* The scheme did not have any interest subvention component.
* NCDC, as the nodal implementation agency, has robust recovery guidelines monitored by its Board of Management.
**Impact Analysis**
**Cooperative Sugar Mills (CSMs)**
* **Impact**: The scheme aims to alleviate the operational and financial distress of CSMs. It provides access to finance to strengthen their operations and improve efficiency.
* **Action Required**: CSMs should utilize the loans provided by NCDC to improve their operational efficiency and address financial distress.
**Sugarcane Farmers and Workers**
* **Impact**: Timely payment of cane bills improved, leading to smooth business operations.
* **Action Required**: Continue to engage with the CSM's on a timely payout for their business operations.
**NCDC (Nodal Implementation Agency)**
* **Impact**: They are responsible for managing the funds, disbursing loans, and ensuring recovery.
* **Action Required**: Adhere to robust guidelines for recovery monitored by its Board of Management.
Key Entities Referenced
Central Sector Scheme-Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills: A scheme designed to alleviate the operational & financial distress of Cooperative Sugar Mills through grants to NCDC.
National Cooperative Development Corporation (NCDC): The nodal implementation agency for the Grant-in-aid scheme aimed at strengthening Cooperative Sugar Mills.
Ministry of Cooperation: The ministry responsible for the Central Sector Scheme, overseeing its implementation and evaluation.
Cooperative Sugar Mills (CSMs): The primary beneficiaries of the Grant-in-aid scheme, receiving loans and support.
Odisha: The specific location where impact of the scheme on livelihoods of sugarcane farmers is to be assessed.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
UNSTARRED QUESTION NO. 599
TO BE ANSWERED ON 3rd FEBRUARY, 2026
COOPERATIVE SUGAR MILLS:
599. Smt. Sangeeta Kumari Singh Deo:
Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:
(a) whether the Government has assessed the current operational and financial status of the 312
Cooperative Sugar Mills (CSMs) across the country, including the number of mills that are
inoperative or facing financial distress, and the regions most affected;
(b) whether details are available regarding loans disbursed under the Central Sector Scheme
“Grant-in-aid to NCDC for strengthening of CSMs”, including the amounts allocated for
ethanol plants, cogeneration power projects, and working capital and the number of CSMs
benefitted;
(c) whether the Government has data on the impact of the scheme on the livelihoods of
sugarcane farmers and workers, particularly in rural and tribal belts such as those in Odisha
and surrounding regions; and
(d) if so, the details thereof along with the interest subvention, repayment performance and the
measures taken to ensure efficient monitoring and recovery of NCDC loans under this scheme?
ANSWER
THE MINISTER OF COOPERATION
सहकारिता मंत्री (SHRI AMIT SHAH)
(a) The Ministry, to alleviate the operational & financial distress of Cooperative Sugar
Mills, unveiled a scheme titled “Central Sector Scheme-Grant-in-aid to NCDC for
strengthening of Cooperative Sugar Mills”. The Ministry while conducting third party
evaluation of the scheme, found out 102 of the 312 cooperative sugar mills to be non-
functional. The Ministry in consultation with States concerned is working for revival of viable
non-functional mills.
(b) Under Central Sector Scheme “Grant-in-Aid to NCDC for strengthening of CSMs” grant
of ₹1000 Cr. was provided by Central Government to NCDC to enable it to provide loans of
₹10,000 Cr. to CSMs by leveraging the grant-in-aid. NCDC in turn has disbursed ₹10,005 Cr.
to CSMs under the scheme.
- The amount disbursed for ethanol plants is ₹251.40 Cr.- The amount disbursed for Cogen power is ₹97.12 Cr. &
- The amount disbursed for working capital is ₹9656.90 Cr.
Totally 56 Cooperative Sugar mills have benefitted under the scheme.
(c) The Ministry got a 3rd party evaluation conducted for the impact of the scheme. It was
found that the NCDC assistance offered relatively lesser rate of interest than counterparts and
set a benchmark for other banks and financial institutions in terms of transparency,
documentation and easy access enabling CSM easy access to finance. As a result, outstanding
Cane bills reduced significantly indicating smooth business operations and timely payout to
farmers & workers.
(d) The scheme did not have any interest subvention component. NCDC, as the nodal
implementation agency for the scheme has robust guidelines for recovery monitored by its
Board of Management.
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