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Amit Shah Declares Ethanol Program a ‘Game Changer’ for India’s Sugar Cooperatives

October 5, 2025
in National, Politics
Reading Time: 4 min

Union Home and Cooperation Minister Amit Shah recently lauded India’s ethanol blending initiative, declaring it a “game-changer” for sugar cooperatives. He emphasized how this program has significantly bolstered their financial stability and fueled prosperity in rural areas. During his address, he also committed the Central government to providing swift assistance to Maharashtra’s farmers grappling with the aftermath of recent devastating floods.

Speaking at a farmers’ gathering in Ahilyanagar district, following the inauguration of the expanded Dr. Vitthalrao Vikhe Patil Cooperative Sugar Factory, Minister Shah highlighted a remarkable transformation. ‘Under Prime Minister Modi’s leadership, our cooperative sector has become more robust, resilient, and thriving,’ he stated. He attributed this substantial improvement in the financial health of sugar cooperatives primarily to the successful ethanol blending program.

Shah further acknowledged the pioneering spirit of Padma Shri Vitthalrao Vikhe Patil, who established the world’s first cooperative sugar factory. ‘This visionary step brought immense prosperity not only to Maharashtra’s farmers but also to those in Gujarat, Karnataka, and Uttar Pradesh,’ Shah noted. He underscored Patil’s crucial role in ensuring that factory profits directly benefited farmers, eliminating intermediaries and guaranteeing fair returns.

The Minister encouraged sugar cooperatives to explore multi-feed ethanol production during off-season periods, utilizing resources like vegetable waste, corn, and rice. ‘This innovative approach will not only guarantee year-round operational efficiency but also significantly contribute to India’s energy independence goals,’ he explained. He assured that the National Cooperative Development Corporation stands ready to provide financial support for these conversions, explicitly stating that cooperatives would receive preferential treatment over private companies for ethanol procurement.

He also stressed the importance of India’s vast domestic market, asserting that its full potential could only be realized if citizens actively champion and purchase indigenous and locally manufactured products.

Highlighting the achievements under Prime Minister Narendra Modi, Shah stated that the country has seen an increase of 67 sugar mills, a surge of 10 lakh tonnes in sugar production, a doubling of distilleries, and a significant 20% ethanol blending in petrol. He also commended the creation of the Ministry of Cooperation, hailing it as a landmark decision that has empowered sugar mills through various initiatives spearheaded by the National Cooperative Development Corporation.

Addressing the recent natural calamity, Shah noted the extensive damage caused by heavy rains in Maharashtra, where over 60 lakh hectares of standing crops and agricultural land were affected. ‘I held a comprehensive discussion with Chief Minister Devendra Fadnavis and Deputy Chief Ministers Eknath Shinde and Ajit Pawar,’ he informed the rally. ‘On behalf of Prime Minister Modi, I guaranteed that the Centre would provide immediate assistance once a detailed damage report is submitted.’

Shah further detailed previous relief efforts, stating that the Central government had already disbursed ₹3,132 crore in aid last year, including ₹1,631 crore in April. The Maharashtra government, he added, contributed an additional ₹2,215 crore, collectively assisting over 31 lakh farmers. Current immediate relief provisions include ₹10,000 in cash, 35 kg of food grains per family, a moratorium on loan recoveries, eased e-KYC requirements, and waivers for land tax and school fees.

In a gesture of solidarity, Shah recognized that all National Democratic Alliance (NDA) MLAs had generously donated one month’s salary to the relief fund, underscoring their commitment to the welfare of the farming community.

Transitioning to economic policy, he lauded the Modi government for significant GST reforms, which he stated provided substantial relief. ‘GST rates were reduced for 395 products, and many food and drink items now incur zero GST,’ he highlighted.

In a move with clear political undertones, Shah applauded the Mahayuti alliance for renaming Ahmednagar to Ahilyanagar and Aurangabad to Chhatrapati Sambhajinagar. ‘I am deeply honored to be in this district, which now proudly carries the name of Ahilyabai,’ he expressed. He asserted that ‘such a significant change is only achievable under the guidance of leaders who truly embody the spirit of Chhatrapati Shivaji Maharaj.’

He provocatively added, ‘Those who continue to glorify Aurangzeb’s legacy would never possess the courage to rename Aurangabad in honor of Dharamveer Sambhaji Maharaj.’

However, the Maharashtra government’s decision to levy a charge on sugarcane mills for flood relief drew sharp criticism from Opposition leaders. They condemned the move as unfair to farmers. Sharad Pawar, chief of the Nationalist Congress Party (Sharadchandra Pawar), publicly questioned the rationale behind burdening sugarcane growers and called for the immediate withdrawal of the ₹15-per-tonne levy.

In response, Chief Minister Devendra Fadnavis clarified that the contribution would be drawn from mill profits, not directly from farmers’ earnings. He further accused the critics of deliberately distorting the facts.

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