The Pipraich Sugar Mill is preparing to diversify beyond sugar by launching ethanol production. The Uttar Pradesh government has earmarked ₹25 crore in the 2026–27 state budget to establish a new distillery at the facility. Once operational, the distillery will produce 120 kilolitres of ethanol per day (KLPD), strengthening the state’s biofuel capacity while improving the mill’s financial stability.
Budget Backing to Accelerate Project
The state government has repeatedly backed the ethanol project with financial allocations over the past few years. With fresh funding now approved, officials aim to fast-track construction and commissioning. Importantly, the new unit is expected to ensure quicker payments to sugarcane farmers, reduce arrears, and generate local employment. By creating new income streams through ethanol, the mill can stabilize revenues and strengthen the rural economy around Pipraich.
From Legacy Unit to Modern Facility
The Pipraich mill carries a long industrial history. Established as a private sugar unit in 1932, it later came under government ownership in 1974. However, operations slowed over time, and the mill eventually shut down in 1999. For years, local farmers demanded its revival. In December 2020, the government upgraded the plant by launching a sulfurless sugar unit, positioning Pipraich as a model sugar manufacturing facility in the state. Today, the mill crushes 50,000 quintals of sugarcane daily—six times the capacity of the earlier unit.
Ethanol Plant to Drive Next Phase of Growth
Building on these upgrades, the government is now moving ahead with the long-planned ethanol distillery. The new facility will directly convert sugarcane juice into ethanol, enabling higher value realization and supporting India’s ethanol blending programme. As reported by agriinsite.com, with ethanol blending gaining national priority, the upcoming distillery positions Pipraich at the centre of Uttar Pradesh’s biofuel strategy. As construction moves forward, the project promises to strengthen farmer incomes, support clean energy goals, and ensure the long-term viability of the historic sugar mill.
