Push for Sugar Sector Revival: CS Calls for Action Plan to Expand Sugarcane Cultivation
Only 7 of 12 sugar mills operational; state needs 50 lakh metric tonnes of cane annually
Hyderabad: The State Chief Secretary, Sanjay Jaju, has directed officials to prepare a comprehensive action plan to significantly increase the area under sugarcane cultivation and revive the sugar industry, while enhancing its production capacity.
A meeting of the committee constituted under G.O. No. 86 for revival of sugar industries and expansion of sugarcane cultivation was held at the Secretariat on Wednesday under his chairmanship. Agriculture Secretary Surendra Mohan, Industries Special Secretary Krishna Aditya, representatives of sugarcane farmers, and agricultural scientists attended the meeting.
The Chief Secretary noted that out of 12 sugar factories in the state, only seven are currently operational. He said that to run these units at full capacity, around 50 lakh metric tonnes of sugarcane are required annually, while the present production stands at only 20 lakh metric tonnes.
He pointed out that sugarcane requires less water compared to paddy and that adopting modern practices like drip irrigation can increase yields and reduce cultivation costs. During the 2026–27 agricultural season, around 19,000 farmers are cultivating sugarcane over 26,000 hectares across the state.
Officials were instructed to study incentives and policies implemented in other states to boost sugarcane cultivation and ensure adequate raw material supply to sugar mills, and to submit a report at the earliest.
Farmer representatives urged the government to provide an incentive of ₹500 per tonne for sugarcane, similar to that given to paddy farmers. They highlighted high investment costs and labour shortages as major challenges, and stressed that sugarcane can also support ethanol and power generation, seeking greater policy support for the sector.
