The Pipraich Sugar Mill in Gorakhpur district, owned by Uttar Pradesh State Sugar Corporation Ltd, is poised to diversify into ethanol production. The state government has earmarked Rs 25 crore in the 2026–27 budget for establishing a new distillery at the sugar mill complex.
The proposed facility will have a production capacity of 120 kilolitres per day (KLPD), enabling direct ethanol manufacturing from sugarcane juice and potentially other feedstocks such as coarse grains.
Uttar Pradesh has firmly established itself as India’s leading ethanol-producing state, with an installed capacity of approximately 236 crore litres per annum as of November 2025 The state currently hosts more than 90 operational distilleries, reflecting the rapid expansion of its biofuel infrastructure. Over the years, ethanol production capacity has witnessed a remarkable surge—rising from around 61 crore litres in 2017 to nearly 97 crore litres by the end of 2025—underscoring sustained policy support and strong industry participation.
The Story of Pipraich Sugar Mill
Originally set up as a private sugar mill in 1932, the Pipraich unit was taken over in 1974 but ceased operations in 1999. For years, the revival of the mill remained a political and economic issue in the region. After assuming office in 2017, Chief Minister Yogi Adityanath initiated the redevelopment of the facility on its original premises. The revamped mill was inaugurated in November 2019, marking the beginning of a new crushing season and restoring confidence among local farmers.
In December 2020, a sulfurless sugar plant was also launched, transforming Pipraich into a model sugar complex.
Today, the mill has a crushing capacity of 50,000 quintals per day—six times that of the old unit—and also generates electricity from by-products. The ethanol project, announced earlier, has received budgetary support for the third consecutive year. Although allocations were made in 2024–25 and 2025–26, implementation faced delays.
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