Gorakhpur: The Pipraich Sugar Mill is set to expand its operations by producing ethanol, with a new distillery planned at the facility. The Uttar Pradesh government has allocated ₹25 crore in the state budget for 2026-27 to support this initiative, Jagran reported.
The proposed distillery will have a production capacity of 120 kilolitres per day. While budget provisions had been made in previous years as well, the new plant is expected to ensure faster payments to sugarcane farmers and create employment opportunities for local youth.
The mill was originally established as a private sugar unit in 1932. It was acquired in 1974, operated for some years, and then closed in 1999. For years, Chief Minister Yogi Adityanath, even before taking office, consistently raised the issue of reviving the closed mill, while previous governments reportedly paid little attention.
After assuming office in 2017, CM Yogi announced the establishment of a new sugar mill on the old mill premises, winning the support of local farmers. On 17 November 2019, he inaugurated the mill in record time, marking the start of the crushing season. Along with sugar production, the mill also generates electricity from its by-products.
On 9 December 2020, the Chief Minister inaugurated a sulfurless sugar plant at Pipraich, turning it into a model facility. The mill now has a daily crushing capacity of 50,000 quintals of sugarcane — six times higher than the old mill.
The CM had also announced plans for a distillery at Pipraich, which is now being implemented. The 2026-27 budget has once again made provisions for a 120 kilolitres-per-day ethanol plant, enabling direct production of ethanol from sugarcane juice.
This marks the third consecutive time the state government has allocated funds for the ethanol plant. Although the project had been included in the 2024-25 budget and again in 2025-26 with ₹90 crore, the plant could not be commissioned due to various delays. Officials later decided to include coarse grains for ethanol production alongside sugarcane to boost output, but implementation was delayed.
The announcement has been welcomed by farmers and local youth, who see it as a boost to both income and employment.
In the ongoing crushing season, the Pipraich unit of Uttar Pradesh State Sugar Corporation Ltd has processed a record 35.54 lakh quintals of sugarcane in just three months. The total value of the sugarcane crushed has been estimated at ₹139.17 crore, of which ₹129.44 crore — nearly 93 percent — has already been paid to farmers. According to Principal Manager Navdeep Shukla, payment processes have been accelerated for the benefit of farmers. This season, the mill has been allocated 137.93 lakh quintals of sugarcane.
