AI SummaryPackage for strengthening to sugar co-operatives as may be policy decided by the state government supports sugar co-operative societies in Gujarat to modernize their facilities, raise productivity, and earn extra income from organic fertilizer sales. Managed by the Agriculture, Farmers Welfare and Cooperation Department, this scheme gives financial help for infrastructure development, tissue culture labs, and compost production, which supports farmers and the whole cooperative sector.
In May 2026, the Gujarat government also approved a relief package of about ₹1,500 crore for sugar cooperative societies, which addresses past income tax demands on cooperatives and benefits more than two lakh sugarcane farmers. This comes on top of the regular financial support the state provides under this scheme. The core benefits, eligibility, and way of applying detailed below remain the same for 2026.
Package for strengthening to sugar co-operatives
Package for strengthening to sugar co-operatives as may be policy decided by the state government works to lift the sugar industry in Gujarat. The Agriculture, Farmers Welfare and Cooperation Department runs the scheme and provides money for modernization, diversification, and production of organic fertilizers to improve sugarcane farming.
The scheme helps sugar co-operative societies take up projects such as setting up tissue culture labs, molasses-based distilleries, and modernizing storage systems. It also gives direct benefits to farmers for the sale of bio-compost, phospho-compost, and vermicompost, which modernizes sugarcane production and strengthens the cooperative network.
Key Information
| Scheme Name | Package for strengthening to sugar co-operatives as may be policy decided by the state government |
|---|---|
| Level | State |
| Scheme For | Infra |
| Beneficiary States | Gujarat |
| Category | Agriculture, Rural & Environment |
| Target Beneficiaries | Registered Societies, Individual Farmers |
| Sub Category | Financial assistance |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Agriculture, Farmers Welfare and Cooperation Department |
| Tags | Agriculture, Farmer, Sugar Co-operatives, Bio Compost Sale |
Benefits
Financial support under the scheme is fixed for each component. The table below gives the standard amount of help for every part of the project.
| Component Name | Standard of Assistance |
|---|---|
| Sale of bio-compost by sugar cooperatives | ₹100 per metric ton (Maximum ₹20,00,000) |
| Sale of phospho-compost (50 kg bag) | ₹100 per bag (Maximum ₹20,00,000) |
| Sale of vermicompost (50 kg bag) | ₹50 per bag (Maximum ₹6,50,000) |
| New tissue culture lab | 50% of project cost (Maximum ₹40,00,000) |
| Expansion of existing labs | 50% of project cost (Maximum ₹20,00,000) |
| Infrastructure projects (turbine, storage tank, mechanization, etc.) | 25% of project cost (Maximum ₹1,00,00,000) |
For example, if Ramesh, a farmer, sells fertilizer through his society, the society claims the subsidy and transfers the eligible part of ₹100 per metric ton directly into his account.
Eligibility
A registered sugar co-operative society in Gujarat can apply for this scheme. Member farmers who belong to such a society are also eligible for the compost-related help. An individual farmer cannot apply on his own, because the sugar co-operative society acts as the applicant on behalf of its members.
Application Process
STEP 1 - Prepare a clear proposal for the project you want financial support for, along with a detailed project report and the required documents.
STEP 2 - Submit the proposal to the District Registrar of your district. The Registrar checks the application and forwards it to the Director of Sugar, Gujarat State, Gandhinagar.
STEP 3 - The Director of Sugar reviews and approves the application, and the society gets the sanctioned amount for the approved project.
Office Address: Director of Sugar, Dr. Jivraj Mehta Bhavan, Block No. 8, 2nd Floor, Gandhinagar. Phone: 232-53437. Email: directorsugar[at]gmail[dot]com. You can find the District Registrar details at the District Registrar office directory.
Documents
Keep these papers ready before you apply:
- Detailed project report with the project scope and goals.
- Unit-wise targets for sugarcane production and productivity.
- Expected number of beneficiaries for the compost-related help.
- Land ownership proof (7/12 land record extract) or a lease agreement.
- Technical opinion and certificates from an Agricultural University.
- Government-approved engineer's report with planning, design, and license for infrastructure projects.
- Justification of benefits such as employment growth, revenue increase, or production efficiency.
References
Scheme guidelines on Agriculture, Farmers Welfare and Cooperation Department
Detailed scheme guidelines PDF
Gujarat ₹1,500 crore relief for sugar cooperatives (Economic Times)
FAQ's
What is the main objective of this scheme?
The scheme supports sugar co-operatives in modernizing their facilities, improving infrastructure, and providing financial incentives for organic fertilizer production.
Who is eligible to apply for financial assistance?
Registered sugar co-operative societies and their active farmer members are eligible for this program. Individual farmers apply through their society.
What types of financial assistance are available?
Help is provided for compost sales, upgrading machinery, building storage units, and setting up or expanding tissue culture laboratories.
What is the maximum limit for compost sales assistance?
The assistance is ₹100 per metric ton for bio-compost (up to ₹20,00,000), ₹100 per bag for phospho-compost (up to ₹20,00,000), and ₹50 per bag for vermicompost (up to ₹6,50,000).
Is support available for tissue culture labs?
Yes, the scheme gives up to ₹40,00,000 for new labs and up to ₹20,00,000 for expanding existing ones.
Can a society apply for multiple projects?
Yes, a society can put up more than one venture, but usually one priority project is considered based on current funding availability.
How is the money disbursed?
Compost-related funds are transferred directly to the farmers' bank accounts. Other infrastructure funds are granted directly to the co-operative societies.
How do I submit the application?
Submit the proposal to the District Registrar within your district, who will coordinate with the Director of Sugar.
Can an individual farmer apply directly?
No, coordinate with your sugar co-operative society, as they act as the applicant on behalf of their members.
Where can I find more help?
Reach out to the District Registrar or the Office of the Director of Sugar in Gandhinagar for clarification.