Cooperative Sugar Industry Calls for Balanced Growth and Financial Stability
The National Federation of Cooperative Sugar Factories Ltd. (NFCSF) has urged the Government of India to introduce farmer-focused reforms in the upcoming Sugarcane (Control) Order-2026, with a strong emphasis on balancing farmer welfare and the long-term sustainability of cooperative sugar mills.
During a high-level brainstorming session held in Pune, senior leaders from India’s cooperative sugar sector discussed critical issues impacting the industry, including rising operational costs, volatile sugar prices and increasing financial stress on sugar factories. The meeting witnessed participation from NFCSF President Harshvardhan Patil, former Maharashtra ministers Dilip Walse Patil, Rajesh Tope and Balasaheb Patil, along with directors of cooperative sugar factories and industry representatives from different states.
A major point of discussion during the meeting was the need to create a stronger connection between the Fair and Remunerative Price (FRP) paid to sugarcane farmers and the Minimum Selling Price (MSP) of sugar. Cooperative sector leaders stated that regular revisions in sugar MSP are necessary to match increasing FRP rates and production expenses. According to industry stakeholders, such reforms would help mills maintain liquidity and ensure timely payments to sugarcane farmers.
Ethanol, Green Energy and Diversification Seen as Future Growth Drivers
Participants strongly supported the continuation of the reserved cane area system and minimum distance criteria between sugar mills. Industry leaders said these safeguards have played an important role in maintaining stability in sugarcane supply and preventing unhealthy competition among mills. They warned that any relaxation in these provisions could negatively impact both farmers and rural economies dependent on the sugar sector. The meeting also highlighted the growing role of ethanol production and biofuels in strengthening the financial position of sugar mills. Cooperative leaders urged the central government to encourage ethanol expansion by offering easier financing options and rationalised interest rates for ethanol-related projects.
Apart from ethanol, the industry stressed the importance of diversification into value-added sectors such as compressed biogas, green power generation and specialty chemicals. Modernisation of sugar factories, adoption of advanced technologies and improved operational efficiency were identified as key priorities for enhancing the competitiveness of cooperative sugar mills in the coming years.
NFCSF announced that the recommendations discussed during the Pune meeting would be submitted to the Government of India while finalising the Sugarcane (Control) Order-2026. Cooperative sector leaders expressed optimism that the revised policy framework would support farmers, strengthen sugar mills and promote sustainable growth in India’s sugar industry.
