Executive Summary:
This document provides answers to questions raised in Lok Sabha regarding the status of sugar mills in India, particularly cooperative sugar mills. It addresses the number of operational and inoperative mills, financial assistance schemes, and government initiatives for revival and establishment of new mills. The information pertains to the sugar season 2024-25 and includes state-wise details and financial support provided.
Key Points / Main Content:
Operational Sugar Mills:
* In Sugar Season 2024-25, there are 534 operational sugar mills in India, with 199 being cooperative sugar mills.
* The document lists the number of operational and cooperative sugar mills per state for the 2024-25 season.
North Eastern Region Sugar Mills:
* There are 4 inoperative sugar mills in the North Eastern Region (Assam-3, Nagaland-1).
* Unfavorable climate and geography hinder sugarcane cultivation in the North Eastern Region.
Karnataka Sugar Mills:
* 17 sugar mills in Karnataka are closed or facing financial problems (district-wise details in Annexure A).
NCDC Financial Assistance Scheme:
* The government, through NCDC, provides financial aid to Cooperative Sugar Mills (CSMs) for ethanol or cogeneration plants, and working capital.
* Rs. 1000 crore released to NCDC (Rs. 500 crore in FY 2022-23 and Rs. 500 crore in FY 2024-25).
* NCDC disbursed Rs. 10,005 crore to 56 CSMs.
Bihar Sugar Mills:
* The State Government plans to revive two closed sugar mills and is pursuing the eauction of another.
* Bihar offers a 20% subsidy (max Rs. 15 Crores) on capital investment for new or expanding sugar mills, as per the 2014 incentive policy.
Maharashtra Sugar Mills:
* 21 cooperative sugar mills are inoperative.
* 19 cooperative sugar factories have been revived through lease/partnership/joint venture.
* NCDC has provided financial assistance to 33 cooperative sugar factories (district-wise details provided).
* MSC Bank has given financial assistance to 5 cooperative sugar factories with government guarantee (district-wise details provided).
Annexure A (Karnataka):
* Lists 17 specific sugar mills closed down or facing financial problems, with their locations.
Impact Analysis:
Central Government:
* Impact: Required to oversee and manage financial assistance schemes for cooperative sugar mills.
* Action Required: Continue to monitor the disbursement of funds through NCDC and evaluate the effectiveness of the schemes.
State Governments (Karnataka, Bihar, Maharashtra, etc.):
* Impact: Responsible for the status of sugar mills within their respective states, including revival efforts and incentive policies.
* Action Required: Implement policies to support the sugar industry, address financial issues of mills, and provide necessary data to the central government.
National Cooperative Development Corporation (NCDC):
* Impact: Acts as the primary agency for providing financial assistance to Cooperative Sugar Mills.
* Action Required: Disburse funds efficiently and monitor the utilization of funds by CSMs.
Cooperative Sugar Mills (CSMs):
* Impact: Beneficiaries of financial assistance aimed at improving their operations and viability.
* Action Required: Utilize the financial assistance for the intended purposes (ethanol plants, cogeneration plants, or working capital) and comply with reporting requirements.
Key Entities Referenced
Ministry of Consumer Affairs, Food and Public Distribution: The Indian government ministry responsible for consumer affairs, food, and public distribution.
National Cooperative Development Corporation (NCDC): An organization that provides financial assistance to Cooperative Sugar Mills (CSMs).
Cooperative Sugar Mills (CSMs): Sugar mills that are organized as cooperatives.
Karnataka: A state in India with a significant number of sugar mills facing financial problems.
Maharashtra: A state in India where many cooperative sugar mills are facing difficulties.
Bihar: A state in India that is planning to revive closed sugar mills and encourage the establishment of new ones.
North Eastern Region: A region in India with a shortage of sugar mills due to unfavorable conditions for sugarcane cultivation, specifically Assam and Nagaland.
Bihar State Sugar Corporation Ltd.: State Government body in Bihar, for which there are plans to revive two closed sugar mills Sakari and Raiyam.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 1716
TO BE ANSWERED ON 30TH JULY, 2025
STRENGTHENING OF COOPERATIVE SUGAR MILLS
1716. SHRI JOYANTA BASUMATARY:
SMT. MALA RAJYA LAXMI SHAH:
DR. HEMANT VISHNU SAVARA:
SHRI KANWAR SINGH TANWAR:
SHRI GOVIND MAKTHAPPA KARJOL:
SHRI CHHATRAPAL SINGH GANGWAR:
SHRI PARBHUBHAI NAGARBHAI VASAVA:
SHRI JANARD AN SINGH SIGRIWAL:
SHRI SUKHJINDER SINGH RANDHAWA:
SHRI VISHNU DAYAL RAM:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) the total number of sugar mills in the country along with the number of Cooperative
Sugar Mills, State/UT-wise including the North- Eastern Region and Karnataka;
(b) whether it is a fact that there is big shortage of sugar mills in North Eastern Region, if
so, the number of sugar mills which are inoperative/facing financial issues and need to be
revived;
(c) the number of sugar mills closed down or facing financial problems and require to be
revived, State-wise and district-wise in Karnataka;
(d) the details of the scheme for providing grant-in-aid to National Cooperative
Development Corporation (NCDC) for strengthening of Cooperative Sugar Mills;
(e) whether the Government proposes to establish new sugar mills in Bihar, if so, the
details thereof, if not, the reasons therefor; and
(f) the details of the sugar mills and cooperative sugar mills facing difficulties in
Maharashtra and the Government support provided to them during the last three years, district-
wise?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a): in sugar season 2024-25, total 534 sugar mills are operational across the country out of
which 199 sugar mills are co-operatives.-2-
The state wise list of sugar mills is as below;
State No. of Operational Operational Cooperative Sugar
Sugar Mills in SS 2024 mills in SS 2024-25
25
Andhra Pradesh 5
Bihar 10
Chhattisgarh 4
Gujarat 15
Haryana 14
Karnataka 79
Madhya Pradesh 22
Maharashtra 200
Odisha 2
Punjab 15
Rajasthan
Tami Inadu 3 0
Telangana 7
Uttar Pradesh 122
Uttarakhand 8
Total 534
(b): There were 4 nos. sugar mills in north eastern region (Assam-3, Nagaland-1) which are
not operational. The shortage of sugar mill is majorly due to the unfavourable climatic and
geographical condition for sugarcane cultivation.
(c): As per the Government of Karnataka, there are 17 number of sugar mills closed down
or facing financial problems in Karnataka, the district wise details of the sugar mills is
enclosed as Annexu re-A.
(d): The Government launched a scheme through NCDC for providing financial assistance
to Cooperative Sugar Mills (CSMs) for setting up ethanol plants or cogeneration plants or for
working capital or for all three purposes. Ministry has released Rs.1000 crore to NCDC
(Rs.500 crore in FY 2022-2023 and 500 crore in FY 2024-25) under the scheme and NCDC
has disbursed financial assistance of Rs. 10,005 crore to 56 CSMs.
(e): The State Government is planning to revive two closed sugar mills Sakari and Raiyam
of Bihar State Sugar Corporation Ltd. as well as State Government has filed a petition in
NCLT, Kolkata Bench for e-auction of Sasamusa Sugar Mill (in Liquidation).-3-
The Government of Bihar in order to encourage setting up of new sugar mill or
expansion of existing sugar mill, declared an incentive policy, 2014, in which Grant of 20%
Subsidy on Capital Investment (Plant and Machinery) to a maximum of Rs. 15 Crores,
whichever is less are given to sugar mills.
The Government of Bihar in the larger interest to encourage setting up of new sugar
mill or expansion of existing sugar mill, declared an incentive policy, 2014, in which Grant of
20% Subsidy on Capital Investment (Plant and Machinery) to a maximum of Rs. 15 Crores,
whichever is less are given to sugar mills.
As per the inputs provided by the Government of Maharashtra, 21 cooperative sugar
mills are inoperative and 19 co-operative sugar factories have been revived by way of lease/
Partnership/ Joint venture basis. In addition, NCDC has given financial assistance to the 33 co-
operative sugar factories. The details are as follows.
Name of District Total No. of Total Rs. in
Sugar mills Crore
SOlaDur 5 82 1 .47
Dharashi v 94.00
Pune 2 225.00
Satatra 3 506.00
Jajgaon 34.74
me 2 177.76
Latur 3 181.97
Ahijyangar 8 1004.70
mt
6 1095.98
Sang I 2 213.90
no 33 4355.12
• in addition MSC Bank has given financial Assistance on Government guarantee to the 5
co-operative sugar factories. The details are as follows.
Name of District Total No. of Total Rs. In
Factories Crore
Solapur 2 204.3 1
me 150.00
Pune 128.00
Nanded 147.69
Total 5 630.10
$88&An nexure-A
SI. Sugar mills closed down or facing financial problems in Karnataka
No.
MPM Sugars Ltd. , Bhadravati Taluk , Shimoga District.
Gangavati Sugars , Pragati City , Gangavathi Taluk , Koppal District.
Bhadra Cooperative Sugar Factory Ltd : Doddabati, Davangere Taluk & District.
Bidar Cooperative Sugar Factory v. Hallikhed, Humanabad Taluk, Bidar District.
Markandeya Cooperative Sugar Factory Ltd., Kakati, Belagavi District.
6 Dakshina Kannada Cooperative Sugar Factory Ltd., Brahmavar, Udupi Taluk &
District.
7 Nirani Sugars Pvt. Ltd., (Lessee of Sri Sriram Cooperative Sugar Factory Ltd.),
Chunchanakatte, KR Nagar Taluk, Mysore District.
8 Basaveshwara Cooperative Sugar Factory Ltd., Kirigeri, Hirekerur Taluk, Haveri
District.
9 Gouribidanur Cooperative Sugar Factory Ltd., Gouribidanur, Chikkaballapur District.
10 Mahadeshwar Cooperative Sugar Factory Ltd, Kollegala Taluk, Chamarajanagar
District
11 Vanivilasa Cooperative Sugar Factory Ltd, Hiriyur Taluk, Chitradurga District.
Sri Devi Sugars Ltd. , Harige , Shimoga Taluk & District.
Sallar Jung Sugar Mills Ltd. , Munirabad , Kushtagi Taluk , Koppal District
Indian Sugars & Refineries Ltd. , Chittawadagi , Hospet Taluk , Bellary District.
15 SPR Sugars Ltd. Kanchugaranahalli , Ramanagara Taluk and District .
16 Sovereign Industries Ltd., Teradala Village , Jamkhandi Taluk , Bagalkot District .
17 Sundari Sugars Limited (Kampli Cooperative Sugar Factory Ltd ), Kampli , Bellary
District