The capacity for production of ethanol is set to be significantly augmented in Uttar Pradesh as 16 new distilleries are to be set up during the 2021-22 fiscal. The new distilleries will bring fresh investment of Rs 1,250.44 crores.
Besides, 11 sugar mills have also made sizable investments for enhancing the daily cane crushing capacity. Both moves were expected to benefit cane farmers as they would not have to wait longer for payment of their dues from the mills. Uttar Pradesh is the largest producer of sugarcane in the country.
From the year 2017-18 to January 31, 2021, a total of 261.72 crore litres of ethanol has been produced in the state through 54 distilleries, which is a record. One of these distilleries owned by Dalmia Group has also started production while the remaining 15 will start production by the year end. Cane farmers and the sugar industry have both benefited from the Yogi government and its investor-friendly policies.
According to officials, DCM Shriram Limited has set up a distillery in Hardoi, which has already started production. Besides, Superior Bio fuels Limited is setting up a distillery at Shamli; Karimganj Biofuels Limited at Rampur; Ajudhia Biofuels Limited at Bilari; Mahakaushal Agricrop India Limited at Shankargarh, Prayagraj; Yadu Sugar Mill at Badaun, Aarti Distillery in Kanpur (Rural), Forever International Distillery at Deoria; Malmalbros International at Shahjahanpur; Raj Shree Fine Chemicals at Shahjahanpur; Indian Potas Limited at Muzaffarnagar; Parle Biscuits Private Limited at Bahraich; and Balrampur Sugar Mill at Lakhimpur Kheri.
This is the first time that investors have shown interest in setting up such a large number of distilleries in the state. Prominent industrial houses setting up distilleries in UP also include DCM Shriram, Parle Biscuits and Balrampur Chini Mills Ltd. The situation was different during previous regimes in the state when investors had little interest in setting up a distillery while sugar mills were shutting down one after the other.
Things started looking up for both cane farmers and sugar industry after Yogi took over reins in UP in 2017. The UP government prioritised boosting sugarcane farming and sugar industry due to the dependence of a large population on sugarcane crop. The government ensured that all closed mills were made operational and the reopened sugar mills include the ones at Venus, Gagalheri and Bulandshahr.
The state accounts for 51 percent of the total land on which sugarcane is cultivated, as well as 50 percent of sugarcane and 38 percent of sugar production in the country. Out of a total of 520 sugar mills in the country, 119 are in Uttar Pradesh. Similarly, of about 48 lakh cane farmers in the state, more than 46 lakh supply their produce to the mills. The sugar industry in UP provides direct and indirect employment to about 6.50 lakh people.