IPL Drives Cooperative Sugar Mill Revival Through Integrated Agri-Business Model
Indian Potash Limited expands sugar, ethanol and renewable energy operations to strengthen rural livelihoods and support India’s cooperative sector
Indian Potash Limited (IPL) is playing a significant role in the revival of closed cooperative sugar mills through an integrated agro-industrial model, supporting the Government of India’s broader efforts to strengthen the cooperative movement, promote rural development and expand renewable energy production.
Recognised traditionally as one of India’s leading fertiliser companies, IPL has diversified its operations over the past decade to become one of the country’s largest cooperative-led players in the sugar industry. The company now owns and operates 11 sugar mills across India, including six in Uttar Pradesh, three in Gujarat and two in Odisha.
Beyond sugar manufacturing, IPL has developed an integrated business ecosystem encompassing ethanol production, cogeneration of green power, Bio-CNG, dairy, cattle feed and fertiliser manufacturing, creating multiple income streams for farmers while strengthening rural economies.
The Ministry of Cooperation has acknowledged IPL’s efforts in reviving closed cooperative sugar mills as part of the Government’s wider strategy to modernise and revitalise the cooperative sugar sector.
Government reforms strengthen cooperative sugar sector
The revival comes alongside a series of policy measures introduced by the Government of India to improve the financial sustainability of cooperative sugar mills.
According to the Ministry of Cooperation, eligible payments made to sugarcane farmers before Assessment Year 2016–17 can now be claimed as expenditure, providing tax relief exceeding ₹46,000 crore.
Additionally, the National Cooperative Development Corporation (NCDC) has sanctioned ₹10,005 crore to 56 cooperative sugar mills for ethanol projects, cogeneration facilities and working capital, creating a favourable environment for modernization and diversification.
Badamba project to boost Odisha’s rural economy
Among IPL’s flagship initiatives is the revival and modernization of the Badamba Cooperative Sugar Mill in Odisha, with an investment of approximately ₹360 crore.
The integrated project includes:
- A 3,500 tonnes-cane-per-day (TCD) sugar plant
- A 16 MW cogeneration power plant
- A Bio-CNG production unit
- Modern cold storage infrastructure
Once operational, the project is expected to benefit nearly 10,000 sugarcane farmers, generate rural employment and create a sustainable market for sugarcane cultivation in the region.
Earlier, the Odisha Government granted in-principle approval for the revival of the Badamba and Bijayananda Cooperative Sugar Mills, adopting IPL’s integrated cooperative model that has already demonstrated success in Gujarat.
Model attracting interest from other states
IPL’s integrated approach is also gaining attention from other states.
The Bihar Government has initiated plans to revive the long-defunct Raiyam and Sakri Cooperative Sugar Mills, drawing inspiration from cooperative revival models implemented in Gujarat and Odisha.
The proposed roadmap includes integrating sugar production with ethanol manufacturing, cogeneration, Bio-CNG and other value-added businesses to improve long-term financial sustainability while strengthening the cooperative ecosystem.
Sustainable farming initiatives
Complementing its industrial expansion, IPL has intensified efforts to promote sustainable agriculture.
The company recently partnered with UPL Sustainable Agri Solutions (UPL SAS) to encourage sustainable sugarcane cultivation in Gujarat through advanced agronomic practices, soil health management and farmer training programmes aimed at improving productivity and supporting climate-resilient agriculture.
Recognition for operational excellence
IPL’s focus on operational efficiency has also earned industry recognition.
The company’s Khadda Sugar Mill and Siswa Sugar Mill were recently recognised among the top-performing private sugar mills in Uttar Pradesh, reflecting continued investments in technology, operational excellence and farmer engagement.
Supporting India’s clean energy goals
IPL’s integrated sugar complexes align closely with the Government’s Ethanol Blended Petrol (EBP) Programme, under which cooperative sugar mills now receive the same opportunities as private mills for ethanol procurement.
Additional policy measures, including the reduction of GST on molasses from 28% to 5%, have further enhanced the commercial viability of sugar mills by encouraging diversification into ethanol and renewable energy.
With integrated facilities combining sugar production, ethanol, cogeneration and Bio-CNG, IPL is contributing to India’s clean energy transition while strengthening the long-term sustainability of cooperative sugar enterprises.
As more states explore the revival of closed cooperative sugar mills, IPL’s integrated agro-industrial model is increasingly being viewed as a scalable framework for rural development, employment generation, renewable energy production and improved farmer incomes.
