Haryana CM sets one-year deadline to turn Haryana's cooperative sugar mills profitable

Jun 02, 2026

New Delhi [India] June 2 : Haryana Chief Minister Nayab Singh Saini on Tuesday directed officers to ensure that all cooperative sugar mills in the state become profitable within the next one year. Calling for a comprehensive overhaul of their functioning, he further directed senior officers to undertake a detailed review of each mill and remove all deficiencies affecting their performance.

The Chief Minister issued these directions while chairing a review meeting of the Cooperation Department's five-year roadmap and action plan under Haryana Vision-2047 at the Haryana Civil Secretariat. He said that he himself would review the department's action plan again after three months.

Emphasising that the interests of farmers are closely linked with cooperative sugar mills, Nayab Singh Saini said it is essential for these institutions to operate in a financially viable manner. He directed the officers to find the reason why cooperative sugar mills continue to incur losses when private sugar mills in Haryana are operating profitably, a release said. He said that the State Government had provided financial assistance amounting to Rs 632 crore to sugar mills during the current year.

The Chief Minister directed the Principal Secretary, Cooperation, Pankaj Yadav, to undertake a thorough analysis of the department's functioning and human resources and initiate a complete transformation of the department. He issued strict directions that firm action be taken against non-performing officers and employees posted in cooperative sugar mills. He also directed officers to modernise sugar mills on a regular basis and accelerate efforts for the installation of ethanol plants.

Nayab Singh Saini further directed that the objective of establishing Compressed Biogas (CBG) plants in all cooperative sugar mills should be achieved by the next financial year.

During the meeting, officers apprised the Chief Minister that cooperative sugar mills are facing a shortage of skilled manpower, as specialised courses related to several technical functions are available only in Pune and Kanpur. Responding to this, the Chief Minister directed that relevant courses be introduced in Industrial Training Institutes (ITIs) to create a pool of skilled youth for the sugar industry. He also expressed satisfaction over the reduction in waiting time for farmers bringing sugarcane to mills for sale.

Highlighting future requirements, the Chief Minister directed officers to prepare a comprehensive action plan for increasing milk production in the state. He called for the formation of new dairy cooperative societies and said women associated with Self-Help Groups (SHGs) in rural areas should be provided panchayat land on lease for establishing dairy units and cultivating green fodder. He directed the Panchayati Raj, Animal Husbandry and Cooperation Departments to formulate a joint action plan for this purpose. He further directed the officers to prepare a long-term strategy to ensure adequate availability of both green and dry fodder for livestock in the years ahead.

Reviewing the functioning of HARCO Bank, the Chief Minister directed that 100 per cent computerisation of all Primary Agricultural Credit Societies (PACS) be ensured. He also sought details regarding women account holders in cooperative banks. Officials informed him that cooperative banks currently have around 15,000 accounts under the Pradhan Mantri Jan Dhan Yojana, and annual targets have been fixed to increase the number further. Credit facilities have also been extended to women associated with Self-Help Groups and Joint Liability Groups, with a lending target of Rs 145 crore.

During a review of the Labour and Construction Federation, Nayab Singh Saini directed that instead of extending larger loans to a limited number of societies, efforts should be made to provide credit support to a greater number of societies so that benefits reach more people. He suggested that relevant norms be made more flexible to achieve this objective.

Officers further apprised the Chief Minister that works worth approximately Rs 2,000 crore are presently being executed through around 3,000 societies. The Chief Minister directed that targets be achieved through effective coordination with other concerned departments.

Reviewing the functioning of the Cooperative Agriculture and Rural Development Bank, the Chief Minister directed that the loan disbursement target be increased from Rs 130 crore to Rs 300 crore. He also instructed officials to ensure that at least 100 PACS are brought into profit during the current year.

Officers further apprised the Chief Minister that the Haryana Cooperative Housing Federation provides housing loans of up to Rs 12.50 lakh per family for the construction of houses for Economically Weaker Section (EWS) families in urban areas. Beneficiaries are presently required to pay simple interest at the rate of 7 per cent on these loans. Seeking to provide relief to low-income families, the Chief Minister directed that the interest rate be reduced from 7 per cent to 4 per cent.

The Chief Minister also reviewed the performance, future plans and developmental strategies of HARCOFED, HAFED, the Registrar Cooperative Societies and other institutions functioning under the Cooperation Department. He issued detailed directions to officials regarding transformative reforms aimed at significantly strengthening these institutions over the next five years.

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