Ethanol blending key to sugar sector turnaround: Amit Shah

Union Home and Cooperation Minister Amit Shah on Sunday said India’s sugar cooperative sector has seen a major financial revival under Prime Minister Narendra Modi’s leadership, attributing the turnaround largely to the government’s push for ethanol blending.

Speaking after inaugurating the expanded Dr Vitthalrao Vikhe Patil Cooperative Sugar Factory in Pravaranagar, Ahilyanagar, Shah said, “The sugar cooperative sector has benefitted immensely after Narendra Modi became the prime minister. The ethanol policy has significantly improved the balance sheets of sugar mills across the country.”

The factory’s crushing capacity has now been raised to 10,000 tonnes of sugarcane per day.

“The government has allocated ₹10,000 crore to promote ethanol production. Ethanol blending has transformed the financial health of sugar mills. If 20 per cent of the earnings are reinvested in expansion, the coming generations will benefit,” Shah said.

He urged cooperative mills to establish multi-feed ethanol plants during the non-crushing season to utilise agricultural waste and surplus produce, such as maize, rice, and vegetables.

“The National Cooperative Development Corporation (NCDC) will provide financial assistance for these units. Cooperative mills that focus on ethanol production will be given priority for loans,” he added.

At the event, Shah unveiled statues of Dr Vitthalrao Vikhe Patil, who pioneered India’s cooperative movement, and his son and former Union Minister Dr Balasaheb Vikhe Patil.

This article has been republished from The Hindustan Times.