In a significant move to support sugarcane farmers, the Yogi Adityanath-led Uttar Pradesh government has launched a mission-mode programme to boost sugarcane production and promote biofuel development. As part of this initiative, the government will revive the Chhata sugar mill in Mathura district, which has been lying defunct since 2009. The mill will be modernised and restarted, creating a larger market for farmers to sell their produce. To operationalise the unit, the government is inviting private players to collaborate with state agencies, ensuring efficient management and production.
In addition to restarting the Mathura mill, the government plans to promote ethanol production by establishing a new distillery in the Pipraich area of Gorakhpur. This ethanol plant is part of the government’s broader effort to promote biofuel usage, which can increase farmers’ income by creating an alternative market for sugarcane-based products. Both projects reflect the Yogi government’s commitment to strengthening the sugarcane sector, improving farmers’ financial stability, and boosting industrial activity in the region.
The Chhata sugar mill, which had been non-operational since 2009, is set to resume production with modernised infrastructure. The government plans to increase the mill’s daily sugarcane crushing capacity from 2,000 tonnes to 4,900 tonnes, a 2.5-fold expansion. This substantial upgrade will enable the mill to process a larger volume of sugarcane, ensuring that farmers have a reliable buyer for their produce and reducing crop wastage.
Farmers in the region are optimistic about the mill’s reopening. Satyaveer Singh, a sugarcane farmer from Kosi Kalan village, expressed confidence in the positive impact of the initiative. He stated, “The increased crushing capacity will not only boost production but also help us get better returns and timely payments.”
To promote ethanol production and reduce dependence on fossil fuels, the government will establish a 120 KPLD (Kilo Litres Per Day) ethanol distillery at the Pipraich sugar mill in Gorakhpur. The project will be developed with a budget of Rs 90 crore, and construction is set to begin once the implementing agency is finalised.
The ethanol production unit is expected to:
- Increase farmers’ earnings by creating an additional market for sugarcane-based products.
- Contribute to the government’s biofuel policy, which promotes the use of ethanol as a cleaner alternative to petrol.
- Generate employment opportunities in the region by boosting industrial activity.
One of the key priorities of the Yogi government has been ensuring that sugarcane farmers receive their dues promptly. Over the past eight years, the government has disbursed a record Rs 2.80 lakh crore to sugarcane farmers. In contrast, previous administrations paid only Rs 66.70 crore between 1995 and 2017. For the 2025-26 financial year, the government has allocated Rs 475 crore to continue timely payments, offering much-needed financial security to sugarcane growers.
Sugarcane farming is a major contributor to Uttar Pradesh’s economy, adding approximately Rs 1.09 lakh crore to the state’s Gross Value Added (GVA). The sugar industry not only supports millions of farmers but also generates employment in associated sectors, such as transportation and processing.
Chief Minister Yogi Adityanath has frequently underscored the importance of sugarcane farmers in driving the state’s agricultural growth. The dual initiatives of reviving the Chhata mill and establishing the ethanol distillery reflect the government’s commitment to modernising the sugar industry and enhancing rural prosperity.
