The Centre’s Ethanol Blended Petrol (EBP) Programme and its focus on green energy have significantly strengthened the financial position of Maharashtra’s sugar industry. During the 2025-26 sugar season, sugar mills in the state generated more than Rs 8,250 crore in additional revenue from ethanol production and bagasse-based power generation.
According to a Pudhari report, sugar mills earned over Rs 6,250 crore from ethanol production, while electricity generated through bagasse-based co-generation plants and supplied to the grid contributed another Rs 1,950 crore.
Despite this additional income, many sugar mills are yet to clear Fair and Remunerative Price (FRP) dues owed to sugarcane farmers.
A total of 210 sugar mills, including 103 cooperative and 107 private mills, completed crushing operations during the 2025-26 season. Together, they crushed around 104.5 million tonnes of sugarcane.
More than 140 sugar mills in Maharashtra currently operate ethanol production units, highlighting the sector’s growing investment in biofuel manufacturing.
Some of the state’s leading ethanol producers include Jawahar Shetkari, Shri Datt Shetkari and Tatyasaheb Kore in Kolhapur district; Sahyadri in Satara; Rajarambapu, Dalmia Bharat and Sonhira in Sangli; Someshwar in Pune; Natural Sugar in Dharashiv; and Mula Cooperative Sugar Factory in Ahmednagar district.
The expansion of ethanol production has transformed the sugar industry from being primarily a sugar manufacturer into a diversified energy producer. The additional revenue has improved the financial health of sugar mills and encouraged further investment in expanding ethanol production capacity.
To curb surplus sugar production and support the Centre’s target of achieving 20% ethanol blending in petrol, sugar mills diverted substantial quantities of B-heavy molasses, C-heavy molasses and sugarcane juice for ethanol production during the 2025-26 season.
