Home India COOPERATION Parliament Question: Strengthening Cooperative Sugar Mills...
Date: 2026-02-10 Category: Not Applicable State: Union Government Country: India

Parliament Question: Strengthening Cooperative Sugar Mills

Issued by COOPERATION · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The Ministry of Cooperation addressed the operational and financial distress of Cooperative Sugar Mills (CSMs) by formulating a "Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills (CSMs)" scheme. A one-time grant of Rs. 1000 crore was provided to the National Cooperative Development Corporation (NCDC) in two installments for loans to CSMs. This assistance aims to set up ethanol and co-generation plants and meet working capital requirements. **Key Points / Main Content** * **Scheme Formulation and Funding:** * The Ministry of Cooperation formulated a scheme providing "Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills (CSMs)". * A one-time grant of Rs. 1000 crore was provided to NCDC in two installments of Rs. 500 crore each in FY 2022-23 & FY 2024-25. * The grant is for the purpose of borrowing additional funds from the market for providing loans of Rs. 10,000 crore to Cooperative Sugar Mills. * **Scheme Objectives:** * To support the setup of Ethanol and Cogeneration plants. * To meet the working capital requirements of CSMs. * The NCDC disbursed Rs. 10,005 crore to 56 CSMs in the country up to 31.03.2025 under this scheme. * **Implementation in Maharashtra:** * In Maharashtra, Loknete Marutrao Ghule Patil Dnyaneshwar SSK Ltd., District Ahmednagar, expanded its existing Ethanol Plant capacity from 45 KLPD to 100 KLPD. * 51 Cooperative Sugar Mills in Maharashtra were given working capital grants. The names of these mills and amounts are detailed in Annexure-I. * **Impact Evaluation:** * A third-party evaluation found that NCDC assistance offered lower interest rates and set transparency benchmarks for other financial institutions. * Outstanding cane bills reduced significantly, indicating smooth operations and timely payments to farmers and workers. * Timely cane payment to farmers has ensured sufficient sugarcane availability, improving productivity and capacity utilization. **Impact Analysis** **Cooperative Sugar Mills (CSMs)** * **Impact:** Access to funds for setting up ethanol and cogeneration plants, and meeting working capital needs at lower interest rates. * **Action Required:** Utilize the financial assistance to improve ethanol production, co-generation capacity, and operational efficiency. **Sugarcane Farmers and Workers** * **Impact:** Timely payment of cane bills leading to improved economic conditions. * **Action Required:** Ensure continued supply of sugarcane for crushing by maintaining a sustainable relationship with the mills. **National Cooperative Development Corporation (NCDC)** * **Impact:** Facilitation and distribution of funds to Cooperative Sugar Mills. * **Action Required:** Continue working with the Ministry of Cooperation to distribute additional funds as needed, while ensuring transparency, documentation and ease of access for the CSMs.

Key Entities Referenced

Ministry of Cooperation: The ministry responsible for formulating and implementing the scheme to strengthen cooperative sugar mills. Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills (CSMs): A scheme formulated by the Ministry of Cooperation to alleviate the distress of Cooperative Sugar Mills by providing grants to the National Cooperative Development Corporation (NCDC). National Cooperative Development Corporation (NCDC): An organization that received grant-in-aid from the Ministry of Cooperation to provide financial assistance to Cooperative Sugar Mills (CSMs). Maharashtra: The state in which a significant number of cooperative sugar mills received assistance under the scheme. Cooperative Sugar Mills (CSMs): The primary beneficiaries of the financial assistance under the 'Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills (CSMs)' scheme.
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GOVERNMENT OF INDIA MINISTRY OF COOPERATION LOK SABHA UNSTARRED QUESTION NO. 1641 TO BE ANSWERED ON 10.02.2026 Strengthening Cooperative Sugar Mills 1641. Shri Sanjay Haribhau Jadhav: Shri Bajrang Manohar Sonwane: Shri Anil Yeswant Desai: Shri Omprakash Bhupalsinh Alias Pavan Rajenimbalkar: Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state: (a) the concrete steps taken by the Government for the strengthening the cooperative sugar mills across the country particularly in the Beed Lok Sabha constituency of Maharashtra; (b) the list of cooperative sugar mills in Maharashtra including those in the Beed Lok Sabha constituency that have received assistance under the Central Sector Scheme for the Strengthening of Cooperative Sugar Mills through NCDC grants during the last five years specially since the financial year 2022-23 till date; (c) the purpose (ethanol plant, co-generation, and working capital) for which the assistance was provided along with the funds sanctioned and released to these mills separately during aforementioned period; (d) the extent to which ethanol production capacity (in KLPD) and co-generation capacity (in MW) has been increased through the said assistance provided to Maharashtra particularly in the Beed region during the last five years; and (e) whether the working capital assistance has led to an improvement in the timeline for sugarcane payments to farmers and the subsequent impact on their economic upliftment and if so, the details thereof? ANSWER THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH) (a) Ministry of Cooperation to alleviate the operational & financial distress of Cooperative Sugar Mills had formulated a scheme namely “Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills (CSMs)”. Under this scheme one time grant of Rs.1000.00 crore was provided to National Cooperative Development Corporation in two instalments of Rs.500.00 croreeach in FY 2022-23 & FY 2024-25 for the purpose of borrowing additional fund from the market for providing loans of Rs.10,000 crore to Cooperative Sugar Mills for setting up of Ethanol plant / Cogeneration plant and for meeting their working capital requirement. Under the scheme, NCDC disbursed Rs.10,005 crore to 56 CSMs, in the country upto 31.03.2025. Additionally, The Ministry in consultation with States concerned is working for revival of viable non-functional mills. (b) & (c) The list of the Cooperative Sugar Mills of Maharashtra along with the purpose of loan, that have received assistance under the Central Sector Scheme "Grant in aid to NCDC for strengthening of Cooperative Sugar Mills" is at Annexure-I. (d) Under the said scheme, in Maharashtra, only one cooperative sugar mill namely Loknete Marutrao Ghule Patil Dnyaneshwar SSK Ltd., District Ahmednagar, Maharashtra has expanded the capacity of its existing Ethanol Plant from 45 KLPD to 100KLPD with Incineration Boiler and condensate polishing unit to achieve Zero Liquid Discharge. Further, no other proposal for expansion of Ethanol and Cogeneration has been received from the Beed Constituency under the said Scheme. (e) 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 CSMs easy access to finance. As a result, outstanding Cane bills reduced significantly indicating smooth business operations and timely payout to farmers & workers. The timely cane payment to farmers has also ensured the availability of sufficient sugarcane for crushing and optimum capacity utilization, which has improved the productivity and efficiency of the CSMs. *****Annexure-I Grant in aid to NCDC for strengthening of CSMs (Rs in crore) SI. Name of CSM Purpose Released No. Amount Maharashtra 1 Rajarambapu Patil Sahakari Sakhar Working Capital 795.31 Karkhana Limited, District Sangli, Maharashtra 2 Krantiagrani Dr.G.D.Bapu Lad Sahakari Sakhar Karkhana Working Capital 350.00 Ltd., District Sangli, Maharashtra 3 Sahakar Maharshi Shivajirao Nagwade SSK Ltd., District Working Capital 103.40 Ahmednagar, Maharashtra 4 K.A. Jawahar SSK Ltd., District Kolhapur, Maharashtra Working Capital 303.46 5 Vishwasrao Naik Sahakari Sakhar Karkhana Ltd., District Working Capital 301.77 Sangli, Maharashtra 6 Shree Datta Shetkari Sahakari Sakkar Karkhana Ltd., Working Capital 548.80 Kolhapur, Maharashtra 7 Dr. D.Y. Patil SSK Ltd., Ltd., District Kolhapur, Maharashtra Working Capital 187.37 8 Vitthalrao Shinde SSK Ltd., District Solapur, Maharashtra Working Capital 450.01 9 Bhimashankar SSK Ltd., District Pune, Maharashtra Working Capital 287.29 10 Shree Pandurang SSK Ltd., District Solapur, Maharashtra Working Capital 308.78 11 Bhima SSK Ltd.,District Solapur, Maharashtra Working Capital 126.38 12 Karmayogi Shankarrao Patil SSK Ltd., Indapur, District W orking Capital 150.00 Pune, Maharashtra 13 Nira Bhima SSK Ltd., District Pune, Maharashtra Working Capital 75.00 14 Shree Rameshwar SSK Ltd., District Jalna, Maharashtra Working Capital 34.74 15 Shetkari SSK Ltd., Killari, District Latur, Maharashtra Working Capital 72.97 16 Shri Shankar SSK Ltd., District Solapur, Maharashtra Working Capital 113.42 17 Loknete Sunderraoji Solanke SSK Ltd., DIstrict Beed, Working Capital 97.76 Maharashtra. 18 Shri Sant Damaji SSK Ltd., District Solapur, Maharashtra. Working Capital 94.00 19 Shri Vridheshwar SSK Ltd., District Ahmednagar, Working Capital 93.00 Maharashtra. 20 Working Capital 362.79Loknete Marutrao Ghule Patil Dnyaneshwar SSK Ltd., Ethanol loan 123.36 District Ahmednagar, Maharashtra. 21 Kisanveer Satara SSK Ltd. District Satara, Maharashtra. Working Capital 327.00 22 Kisanveer Khandala SSK Ltd., District Satara, Maharashtra. Working Capital 140.00 23 Agasti SSK Ltd., District Ahmednagar, Maharashtra. Working Capital 94.00 24 SMS Kolhe SSK Ltd., District Ahmednagar, Maharashtra. Working Capital 142.00 25 Shree Tatyasahweb Kore Warana SSK Ltd., District Working Capital 527.00 Kolhapur, Maharashtra. 26 Shri Vitthalsai SSK Ltd., Dharashiv, District Osmanabad, Working Capital 94.00 Maharashtra. 27 Ambajogai SSK Ltd., District Beed, Maharashtra. Working Capital 80.00 28 Shri Vitthal SSK Ltd., Gursale, District Solapur, Maharashtra Working Capital 347.67 29 Ashok SSK Ltd., District Ahmednagar, Maharashtra Working Capital 90.30 30 PKDNN Hutatma SSK Ltd., District Sangli, Maharashtra Working Capital 214.95 31 Rena SSK Ltd. District Latur, Maharashtra Working Capital 35.00 32 VVD Manjara SSK Ltd., District Latur, Maharashtra Working Capital 70.00 33 Vilas SSK Ltd., District Latur, Maharashtra Working Capital 35.00 34 Vilas SSK Ltd., District Latur, Maharashtra (Unit 2) Working Capital 35.00 35 SB Thorat SSK Ltd., District Ahmednagar, Maharashtra Working Capital 216.42 36 Shri Vighnahar SSK Ltd., District Pune, Maharashtra Working Capital 268.25 37 SMS Mohite Patil SSK Ltd., District Solapur, Maharashtra Working Capital 80.00 38 Sh Dudhganga Vedganga SSK, Kolhapur, Maharashtra Working Capital 100.00 39 Chhatrapati Shahu SSK, District, Kolhapur, Maharashtra Working Capital 21.00 40 Sharad SSK Ltd., District Kolhapur, Maharashtra Working Capital 288.46 41 Sadashivrao Mandlik SSK Ltd., District Kolhapur, Working Capital 139.00 Maharashtra 42 Kumbhi Kasari SSK Ltd., District Kolhapur, Maharashtra Working Capital 153.44 43 Chhatrapati Rajaram SSK Ltd., District Kolhapur, Working Capital 165.00 Maharashtra 44 Ajinkyatara SSK Ltd., District Satara, Maharashtra Working Capital 39.00 45 Vasantrao Desai Aajra SSK Ltd., District Kolhapur, Working Capital 122.68 Maharashtra 46 Ganesh SSK Ltd., District Ahmednagar, Maharashtra Working Capital 74.00 47 Shri SS Maruti Maharaj SSK Ltd., District Latur, Working Capital 109.00 Maharashtra 48 Kadwa SSK Ltd., District Nashik, Maharashtra Working Capital 15.00 49 Karmaveer Shankarrao Kale SSK Ltd., Working Capital 80.72 Kopargaon, District Ahmednagar, Maharashtra50 Padmashri Dr. Vikhe Patil SSK Ltd., District Ahmednagar, Working Capital 296.00 Maharashtra 51 Shree Makai SSK Ltd., District Solapur, Maharashtra Working Capital 140.00 Total 9519.49

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