Lok Sabha Question No. 444 (STARRED), answered on 2026-03-24
Subject: Cooperative Sugar Mills
Ministry: COOPERATION
Asked by: Shri Neeraj Maurya

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA STARRED QUESTION NO. 444 TO BE ANSWERED ON 24 TH  MARCH, 2026

## COOPERATIVE SUGAR MILLS

## * 444. SHRI NEERAJ MAURYA:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

- (a) whether the Government proposes to provide any special financial package to improve the dilapidated  condition  and  technological  obsolescence  of  the  cooperative  sugar  mills located in Bareilly and Budaun districts, if so, the details thereof;
- (b) whether any special loan assistance is being provided to local youths and Farmer Producer Organizations (FPOs) for establishing 'Food Processing Units' in Aonla region through the cooperative sector, if so, the details thereof;
- (c) the policy of the Government to provide employment to local landless labourers through cooperative units like IFFCO;
- (d) whether the Government proposes to provide interest free loans to the Zari-Zardozi artisans of Budaun by organising them through cooperative societies; and
- (e)   if so, the details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF LOK  SABHA  STARRED  QUESTION  NO.  444  'COOPERATIVE  SUGAR  MILLS' ASKED BY SHRI NEERAJ MAURYA, HON'BLE MEMBER OF PARLIAMENT DUE FOR REPLY ON 24 TH  MARCH, 2026 .

(a) Kisan Sahkari Chini Mills Ltd., Semikhera (District Bareilly) with a capacity of 2750 TCD and Kisan Sahkari Chini Mills Ltd., Shekhupur (District Budaun) with a capacity of 1250 TCD are presently operational and functional.

As  per  information  received  from  Government  of  Uttar  Pradesh,  a  total  of  23 cooperative sugar mills are operational in the cooperative sector of Uttar Pradesh. Financial assistance in the form of loans is provided by Govt. of Uttar Pradesh for off-season repair and maintenance of cooperative sugar mills. During the financial year 2024-25, a total amount of ₹24.00 crore was made available for this purpose, out of which ₹125.00 lakh and ₹120.00 lakh were provided to Semikheda and Badaun sugar mills, respectively, by Govt. of Uttar Pradesh. After undertaking off-season repair and maintenance works, both Semikheda and Badaun sugar mills have been operated successfully during the crushing season 2025-26. The Badaun sugar mill crushed a total of 10.46 lakh quintals of sugarcane during the 2025-26 crushing season and achieved a sugar recovery of 9.56 percent, successfully concluding the crushing season. Further, considering the availability of sugarcane in the command area of Semikheda sugar mill in district Bareilly, Govt of UP aims to establish a project to enhance the crushing capacity of the existing mill from 2750 TCD to 3500 TCD and a new sugar mill with a refinery for production of refined sugar based on the latest technology.

No proposal has been received by Ministry of Cooperation or National Cooperative Development Corporation, a statutory organization under administrative control of MoC, for financing and promoting cooperatives seeking any financial package for these mills.

Government  of  India  implemented  a  Central  Sector  Scheme  for  'Strengthening  of Cooperative Sugar Mills' with a total outlay of ₹1,000 crore for modernization, expansion and ethanol-related activities. A total of 56 sugar cooperative mills received financial assistance exceeding Rs. 10,000 crore under the scheme.

Further, financial assistance is also available to cooperative sugar mills under the Sugar Development Fund (SDF) for modernization, cogeneration and  ethanol  projects,  subject  to eligibility and submission of viable proposals. No specific proposals pertaining to the abovementioned mills/districts have been received under SDF. However, 4 mills from other districts of Uttar Pradesh have availed benefits under the SDF.

(b) NCDC, provides financial assistance for cooperative development across a wide range of notified commodities and services, including support for agricultural and allied infrastructure, value chain development and capacity building of cooperative institutions.  As on 25.02.2026, NCDC has cumulatively disbursed ₹5,16,122.32 crore for the development of cooperative institutions across the country, out of which ₹7,749.08 crore has been disbursed in Uttar Pradesh.

NCDC also implements schemes for providing financial assistance to  cooperatives, including those promoted by youth, for setting up agro-processing and food processing units. Under  the  Central  Sector  Scheme  for  Formation  and  Promotion  of  10,000  FPOs,  NCDC provides collateral-free financial assistance to FPO Cooperatives under the Credit Guarantee Scheme for FPOs (CGSFPO) for activities including establishment of food processing units. However, no block in Aonla region has been allocated to NCDC for promoting FPOs in the cooperative sector.

Also  as  per  information  received  from  Government  of  Uttar  Pradesh  Cooperative development in Uttar Pradesh reflects a diversified presence across different sectors such as Dairy, Farmer Producer Organizations (FPOs) and Fishery Cooperative Societies (FCS). In particular, Bareilly district has about 203 such entities (including 15 Dairy cooperatives, 182 FPOs and  6  FCS),  while  Budaun  district  has  about  127  such  entities  (including  10  Dairy cooperatives, 112 FPOs and 5 FCS). This indicates a strong presence of FPOs in both districts, contributing to aggregation, value addition and improved market linkages for farmers.

(c) The Indian Farmers Fertilizer Cooperative Limited, like other cooperative institutions, undertakes their operations including hiring of employees as per their approved byelaws on commercial  principles.  The  cooperative  societies  are  governed  by  respective  State Act  or centrally by MSCS Act,2002.

(d) & (e) At present, there is no specific scheme exclusively providing interest-free loans to Zari-Zardozi artisans of Budaun.

NCDC  provides financial assistance under its various schemes to promote entrepreneurship through cooperatives, including for artisan-based activities.  Artisans, including those engaged in traditional crafts such as Zari-Zardozi, can organize themselves into cooperative  societies  and  avail  financial  assistance  for  working  capital,  infrastructure  and marketing support, subject to viability and eligibility norms.

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