In sugar sector, NCDC has been promoting establishment and development of sugar factories in the co-operative sector so as to help them in achieving the primary objective of ensuring remunerative prices to the farmers for sugarcane.

Activities Assisted:

Assistance is provided for the following activities under various schemes of Sugar:

  • Investment loan assistance to the State Governments to supplement their resources for equity participation in new co-operative sugar mills.

  • Term loan assistance for setting up of new mill and to the existing co-operative sugar mills for modernization/ expansion of capacity.

  • Term loan assistance for establishment of sugar by-product units.

  • Margin Money assistance to the existing co-operative sugar mills.

  • Short/medium term loan towards working capital requirements of coop. Sugar mills.

Eligible Cooperative Societies:

Under the Sugar scheme, financial assistance is provided to National/ State/ District/ Regional/ Primary level Cooperative Sugar Federations/Societies.

Eligibility criteria for availing of assistance by sugar cooperatives are as under:

A.Eligibility Criteria for Assisting New Mills

  • Term loans tied up
  • Placed orders for plant and machinery
  • Adequate sugarcane potential
  • Techno-economic feasibility

B.Eligibility Criteria for assisting Modernization-cum-expansion Projects

  • Adequate cane potential
  • Techno-economic feasibility
  • Capable of raising own share of project cost

C. Eligibility Criteria for Assisting Sugar By Product Units

  • Techno-economic feasibility
  • Capable of raising own share of project cost

D. Term loan assistance towards margin money requirements and Working capital Scheme

  • Quantum of short/medium term loan to cooperative sugar factories assistance will be on case to case basis.

Mode of Funding:

Financial assistance is provided through the State Government or directly to the eligible cooperatives on certain prescribed terms and conditions. NCDC provides financial assistance in the form of loan (both Term Loan and Investment Loan). Under the Working Capital Scheme, the assistance can also be extended through the State Apex Coop. Banks providing working capital assistance to the sugar mill(s) directly/through DCCB.

Quantum of Assistance and Pattern of Assistance:

Quantum of assistance may be up to 90%-95% through State Government and upto 90% of project cost directly to the society. In case of business promotion viz. margin money/ working capital / strengthening of share capital quantum of assistance can be upto 100% of the requirement.


For detailed pattern of assistance please Click at the link provided.

Norms for direct funding:

Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:

  • Net worth should be positive.

  • There should be no erosion in share capital.

  • Should be in a position to provide 1.25 to 1.5 times security.

  • Financial /operational performance of the cooperative should be at satisfactory level of NCDC.

For detailed norms of Direct Funding please Click at the link provided.

Impact of NCDC’s assistance in the sector:

  • The role played by NCDC in promoting and financing cooperative sugar mills has given a real boost to sugar industry. Consequently, the share of cooperatives in the national production of sugar has risen from 15.54 lakh ton since 1973-74 to 98.56 lakh metric tons (upto crushing season 2020-21).

  • Increase in number of installed sugar mills from 102 in 1973-74 to 283 as on 31.03.2021.

  • Improvement in the socio-economic standards of farmers.

  • Cooperative sugar mills are acting as NUCLEI for area development.

  • Value addition and remunerative price to sugarcane growers.

Rs. in crore


Sanctioned Amount

(FY 22-23)

Disbursed Amount

 (FY 22-23)

Cumulative disbursement

till 31.03.2023






Common Loan Application Form for availing assistance under the schemes of NCDC is available in NCDC’s website.

For further details, please contact or write to:

Sugar Division
National Cooperative Development Corporation

4, Siri Institutional Area, Hauz Khas
New Delhi – 110 016
Tel No.: +91-011-20862512, 20862866, 20862490, 20862801
Fax: +91-011-26962370, 20862619, 26602568

Website: Email:

Regional Directorates of NCDC: Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram