NCDC Releases ₹10,005 Crore for Cooperative Sugar Mills

06-Dec-2025 11:52 AM

New Delhi. The Union Minister of Cooperation has announced that the Central Government has launched a scheme through the National Cooperative Development Corporation (NCDC) to provide financial assistance to entrepreneurs for setting up new ethanol plants, power generation units, or raising working capital, or for any of these three purposes.

The Ministry of Cooperation has allocated ₹1,000 crore to NCDC under this scheme. Under this scheme, an amount of ₹500 crore was allocated for the financial year 2023-24 and ₹500 crore for the financial year 2024-25. Furthermore, NCDC has released a total of ₹10,005 crore to 56 cooperative sugar mills in the country so far.

To realize the vision of "Prosperity through Cooperation," the Ministry of Cooperation is undertaking a number of measures, particularly in the sugar and dairy industries, and financially strengthening agricultural cooperatives across the country, including Karnataka.

According to the Cooperation Minister, the government has issued a clarification stating that cooperative sugar mills will not be required to pay any additional income tax for paying sugarcane farmers prices higher than the Fair and Remunerative Price (FRP) or State Supported Price (SSP).

This rule has been in effect for the period after April 2016. Interestingly, despite numerous government efforts and incentives, most cooperative sugar mills in the country remain in the red.