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Balance sheets of sugar cooperatives changed due to ethanol blending: Amit Shah

Press Trust of india by Press Trust of india
October 5, 2025
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Centre will consider revoking AFSPA, pulling back troops from Jammu and Kashmir: Amit Shah
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Ahilyanagar (Maharashtra):  Ethanol blending has transformed the balance sheets of sugar mills and India’s sugar cooperatives sector has benefitted immensely after Narendra Modi became the prime minister, Union minister Amit Shah said on Sunday.

He also said that the Centre, under PM Modi’s leadership, will extend all possible assistance to farmers in Maharashtra who have suffered losses due to heavy rains in the state recently.

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The Union Minister for Home and Cooperation was addressing a farmers’ rally after inaugurating the expanded capacity of Dr Vitthalrao Vikhe Patil Cooperative Sugar Factory in Maharashtra’s Ahilyanagar district, which has increased its crushing capacity to 10,000 tonnes of sugarcane per day.

He also unveiled statues of Dr Vitthalrao Vikhe Patil, a notable figure in the cooperative movement, and his son and former Union minister Dr Balasaheb Vikhe Patil.

“The sugar cooperative sector has benefitted immensely after Narendra Modi became the prime minister,” he said, adding that sugar cooperatives should modernise to ensure long-term sustainability.

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

Shah appealed to sugar cooperatives that they should produce multi-feed ethanol in the non-crushing season.

“During the non-crushing season, cooperative mills should establish multi-feed ethanol units to utilise wasted vegetables, maize and rice. The NCDC (National Cooperative Development Corporation) will provide loans for such upgradation, and cooperative mills prioritising ethanol production will be given preference,” Shah said.

He also said that the Modi government will render all possible assistance to farmers in Maharashtra, affected by heavy rains recently.

Shah lauded Chief Minister Devendra Fadnavis, and Deputy CMs Eknath Shinde and Ajit Pawar for their initiative in seeking central assistance for the state farmers.

Several parts of Maharashtra witnessed heavy rains and floods recently, causing widespread damage.

After arriving here on Saturday night, Shah held a meeting at a hotel in Shirdi with CM Fadnavis and his deputies.

On Sunday morning, the Union minister offered prayers at the Saibaba temple in Shirdi.

Later, at the farmers’ rally, Shah said more than 60 lakh hectares of agricultural land have been affected by the recent downpour.

“I had a detailed meeting with Chief Minister Devendra Fadnavis and both Deputy Chief Ministers Eknath Shinde and Ajit Pawar. On behalf of Prime Minister Narendra Modi, I assured them that once a detailed report is submitted to us, PM Modi will not delay extending any help to Maharashtra’s farmers,” Shah said.

The Centre has already released Rs 3,132 crore from the previous year’s assistance, including Rs 1,631 crore in April this year. The Maharashtra government has also provided Rs 2,215 crore as relief, benefiting more than 31 lakh farmers, Shah said.

He further said the state government has taken several steps to ease the farmers’ distress.

“The Maharashtra government has provided Rs 10,000 cash assistance and 35 kg of foodgrains to each flood-affected family. Loan recovery has been suspended, e-KYC norms relaxed for one time, and relief has been given in revenue tax and school fees,” he said.

Highlighting the government’s measures for consumers, Shah said the Modi government has slashed GST on 395 items, mainly food products, giving a major boost to consumers.

Appealing for self-reliance, Shah said Indians should pledge to buy locally made goods.

“Make a resolve not to purchase foreign items. If 140 crore people buy and use things made in India, we will surely become vishwaguru by 2047,” he said.

At the rally, Fadnavis hit out at Opposition leaders criticising the state government’s decision to impose a levy on sugarcane mills, asserting the contribution would come from their profits and not from farmers’ earnings.

In view of the heavy rainfall and flood-related losses across parts of the state, the government last week announced that it would impose a levy of Rs 10 per tonne of sugarcane on mills for the Chief Minister’s (CM) Relief Fund and Rs 5 per tonne for assistance to flood-affected farmers.

“There are around 200 mills in the state. One mill may have to contribute about Rs 25 lakh to the CMRF. We are seeking funds from the profits of sugar mills, not from farmers,” Fadnavis said.

He slammed those criticising the decision, saying they were misinterpreting it.

“Some people have stooped so low that they are portraying this as the government taking money from farmers. The fact is that the contribution is from the profits of the mills and will go to flood-hit farmers in Marathwada. Some mills have even been found cheating farmers in tonnage. I will show them the mirror,” the chief minister said.

NCP (SP) president and former Union agriculture minister Sharad Pawar, on Sunday, however, criticised the move.

“I am surprised that the Maharashtra government decided to charge an extra levy from sugarcane cultivators to provide financial assistance to Marathwada farmers hit by floods. I hope the state government changes its decision,” Pawar said.

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