Ethanol Blending Transforms Cooperative Sugar Mill Finances

06-Oct-2025 04:17 PM

Ahilyanagar. The Union Minister of Cooperation has stated that the launch of the ethanol blending program has transformed the balance sheets of sugar mills, significantly benefiting cooperative sugar units.

The Central Government will provide all possible assistance to affected farmers in view of the crop damage caused by heavy rains and floods in Maharashtra.

The Union Minister of Cooperation inaugurated the expanded capacity of a cooperative sugar mill in Ahilyanagar district, Maharashtra, yesterday.

The factory's average daily crushing capacity has now increased to 10,000 tons. It is noteworthy that Maharashtra is the second largest sugarcane producer in the country, after Uttar Pradesh.

While the sugarcane acreage in the state has increased significantly compared to last year, the average sugarcane yield and sugar recovery rate are expected to decline due to excess rainfall, waterlogging, and flooding.

The Maharashtra government has granted permission to the state's sugar mills to begin crushing sugarcane from November 2025.

The Cooperative Minister stated that the financial position of cooperative sugar mills has strengthened in recent years.

These units will need to modernize to ensure long-term sustainability. The Central Government has allocated ₹10,000 crore for ethanol development.

According to the Cooperative Minister, if sugar mills invest 20 percent of their income in capacity expansion, future generations will benefit.

The Minister urged government sugar mills to continue producing ethanol from various ingredients (rice, maize, etc.) after the sugarcane crushing season ends.

This will generate additional income for the mills and help increase ethanol production. The National Cooperative Development Corporation will provide loans to sugar mills for this purpose.