The Government launched a scheme through NCDC for setting up ethanol plants or cogeneration plants or for working capital or for all three purposes. The Ministry has released Rs.1000 crore to NCDC (Rs.500 crore in FY 2022-23 and Rs.500 crore in FY 2024-25) under the scheme and NCDC has released Rs.10,005 crore to 56 Cooperative sugar mills (CSMs), the Union Cooperation Minister Amit Shah informed Rajya Sabha.
The Ministry of Cooperation, since its inception on 6th July, 2021, has undertaken several initiatives to realize the vision of “Sahakar-se-Samriddhi” and to strengthen dairy, sugar and agri-cooperatives across the country including Karnataka.
Amit Shah said, “The Government has issued a clarification that cooperative sugar mills would not be subjected to additional income tax for paying higher sugarcane prices to farmers up to Fair and Remunerative or State Advised Price, from April 2016 onwards. The Government has made a provision in its Union Budget 2023-24, wherein Sugar cooperatives have been allowed to claim as expenditure their payments to sugarcane farmers for the period before the assessment year 2016–17, giving them a relief of more than Rs.46,000 crore.”
“Indian Potash Limited, on the suggestions of the Ministry of Cooperation, has taken an initiative for the revival of closed Cooperative Sugar Mills,” he added.
As per the National Cooperative Database (NCD), there are a total of 46,798 cooperative societies in Karnataka having 2,38,07,649 members. As on 25.11.2025, NCDC has cumulatively disbursed ₹4,67,455.66 crore for the development of cooperative institutions across the country. Out of which ₹4,164.95 crore has been disbursed for cooperative development in Karnataka
