The Ministry of Cooperation replied in the Parliament during the Budget Session to a question regarding whether the Government proposes to provide any special financial package to improve the condition of the cooperative sugar mills located in Bareilly and Budaun districts.
In the reply, the Minister stated that the Kisan Sahkari Chini Mills Ltd., Semikhera (District Bareilly), with a capacity of 2750TCD 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 the 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 the Uttar Pradesh Government 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.
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%, successfully concluding the crushing season.
Further, considering the availability of sugarcane in the command area of Semikheda sugar mill in district Bareilly, UP Government aims to establish a project to enhance the crushing capacityof 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.
The Government has implemented a Central Sector Scheme for "Strengthening of
Cooperative Sugar Mills" with a total outlay of ₹1,000 crore for modernisation, 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 modernisation, cogeneration and ethanol projects, subject to
eligibility and submission of viable proposals.

