Lok Sabha Question No. 1716 (UNSTARRED), answered on 2025-07-30
Subject: Strengthening of Cooperative Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Dr. Hemant Vishnu Savara, Smt. Mala Rajya Laxmi Shah, Shri Govind Makthappa Karjol, Shri Sukhjinder Singh Randhawa, Shri Vishnu Dayal Ram, Shri Joyanta Basumatary, Shri Janardan Singh Sigriwal, Shri Chhatrapal Singh Gangwar, Shri Kanwar Singh Tanwar, Shri Parbhubhai Nagarbhai Vasava

## 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, districtwise?

## 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.

The state wise list  of  sugar mills  is as below;

| State          | No. of Operational Sugar Mills in SS 2024 25   | Operational Cooperative Sugar mills in SS 2024-25   |
|----------------|------------------------------------------------|-----------------------------------------------------|
| 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).

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 cooperative sugar factories. The details are as follows.

| Name of District   | Total No. of Sugar mills   | Total Rs. in 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.

| Nameof District   | Total No. of Factories   | Total Rs. In Crore   |
|-------------------|--------------------------|----------------------|
| Solapur           | 2                        | 204.3 1              |
| me                |                          | 150.00               |
| Pune              |                          | 128.00               |
| Nanded            |                          | 147.69               |
| Total             | 5                        | 630.10               |

$88&

## An nexure-A

| SI. No.   | Sugar mills closed down or facing financial problems in Karnataka                                                               |
|-----------|---------------------------------------------------------------------------------------------------------------------------------|
|           | MPM Sugars Ltd. , Bhadravati Taluk , Shimoga District.                                                                          |
|           | Gangavati Sugars , Pragati City , Gangavathi Taluk , KoppalDistrict.                                                            |
|           | Bhadra Cooperative Sugar Factory Ltd : Doddabati, Davangere Taluk & District.                                                   |
|           | Bidar CooperativeSugar Factory v. Hallikhed,HumanabadTaluk, Bidar District.                                                     |
|           | Markandeya CooperativeSugar Factory Ltd., Kakati, Belagavi District.                                                            |
| 6         | Dakshina Kannada CooperativeSugar Factory Ltd., Brahmavar,Udupi Taluk & District.                                               |
| 7         | Nirani Sugars Pvt. Ltd., (Lessee of Sri Sriram CooperativeSugar Factory Ltd.), Chunchanakatte, KR Nagar Taluk, Mysore District. |
| 8         | Basaveshwara Cooperative Sugar Factory Ltd., Kirigeri, Hirekerur Taluk, Haveri District.                                        |
| 9         | Gouribidanur CooperativeSugar Factory Ltd., Gouribidanur, Chikkaballapur District.                                              |
| 10        | Mahadeshwar Cooperative Sugar Factory Ltd, Kollegala Taluk, Chamarajanagar District                                             |
| 11        | Vanivilasa CooperativeSugar Factory Ltd, Hiriyur Taluk, Chitradurga District.                                                   |
|           | Sri Devi SugarsLtd. , Harige , Shimoga Taluk& District.                                                                         |
|           | Sallar Jung SugarMills Ltd. , Munirabad , Kushtagi Taluk , Koppal District                                                      |
|           | Indian Sugars& Refineries Ltd. , Chittawadagi , Hospet Taluk , Bellary District.                                                |
| 15        | SPR SugarsLtd. Kanchugaranahalli , RamanagaraTaluk and District .                                                               |
| 16        | Sovereign Industries Ltd., Teradala Village , Jamkhandi Taluk , Bagalkot District .                                             |
| 17        | Sundari SugarsLimited (Kampli CooperativeSugar Factory Ltd ), Kampli , Bellary District                                         |