New Delhi, May 28: The government has intensified efforts to promote a circular economy approach in the cooperative sugar sector, aiming to improve efficiency, sustainability, and farmer incomes.
The initiative focuses on better utilisation of sugarcane by-products such as bagasse, molasses, and press mud, encouraging their use in ethanol production, bioenergy, organic fertilisers, and other value-added applications. Officials said this integrated model is expected to enhance revenue streams for sugar mills while reducing waste and improving environmental outcomes.
Policy measures are also being directed at strengthening cooperatives through improved governance, modern processing technologies, and diversification into allied green energy businesses. This is expected to make the sector more financially resilient while supporting India’s broader clean energy and climate goals.
Experts noted that the circular economy framework could play a key role in stabilising the sugar industry, especially during surplus production cycles, by creating additional income sources beyond traditional sugar sales.
The government said the approach will also benefit sugarcane farmers by improving payment cycles and ensuring better price realization through diversified industrial use of cane-based resources.