Lucknow, February 6: A significant decision has been made to benefit sugarcane farmers in Uttar Pradesh. A new cooperative sugar mill with a capacity of 5,000 TCD has been approved in Bagpat.
The proposal to increase the mill’s crushing capacity from 2,500 tons per day to 5,000 tons per day, along with the establishment of a new sugar mill based on the latest technology for refined sugar production, was approved in the 101st meeting of the Planning Department’s Sponsorship Structure and Evaluation Division (PIB Secretariat), chaired by Chief Secretary S.P. Goyal.
The total estimated cost of this project is ₹407.02 crore (approximately $49 million). The project will be financed with 50% of the state government’s equity and the remaining 50% as a loan from the state government. Instructions have been given to send a proposal for a loan provision of ₹100 crore in the budget for the financial year 2026-27.
Officials noted that the establishment of the new sugar mill is primarily based on the sufficient availability of sugarcane in the command area. It is estimated that around 800,000 tons of sugarcane will be available for crushing each year for the next five years. Currently, the machinery at the mill is over 30 years old, leading to high consumption of steam and bagasse.
During the 2024-25 crushing season, the mill processed 449,000 tons of sugarcane, while the remaining sugarcane was sent to private sector mills. The new mill will feature modern technology-based equipment, improving operational capacity and energy efficiency.
According to officials, the 5,000 TCD capacity can be achieved in an average of 22 hours. This will reduce the crushing season duration and ensure timely processing of farmers’ sugarcane, facilitating smoother payment of sugarcane prices. The project will utilize 100 TPH, 67-bar high-pressure boilers, a 10-megawatt power turbine, and ACVFD (Variable Frequency Drive) motors, which will reduce steam consumption, save energy, and ensure greater availability of bagasse.
Officials indicated that refined sugar production will enhance sugar quality and enable sales at competitive market rates. Through a DCS-based automation system, refined sugar will be produced instead of sulfur-containing sugar, controlling sugar losses and reducing production costs. They also mentioned that this project will create employment opportunities in the region, increase farmers’ incomes, and contribute to the overall development of the state’s sugarcane-producing areas.