New Delhi, May 28 (AHN) The government is pushing a circular economy-based model for the sugar sector through the proposed formation of a multi-state cooperative society aimed at strengthening cooperative sugar mills, improving sustainability and creating additional revenue streams from by-products, the Ministry of Cooperation said on Thursday.

The initiative was discussed during a programme on 'Promoting Circular Economy in the Sugar Sector through Formation of a Multi-State Cooperative Society' organised by the Pune regional office of the National Cooperative Development Corporation (NCDC) under the guidance of the Ministry of Cooperation at the Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM), Pune.

The programme was chaired by Union Minister of State for Cooperation and Civil Aviation Murlidhar Mohol, which was attended by senior officials from the Ministry of Cooperation, representatives of Indian Potash Limited and members of cooperative sugar mills.

Around 31 cooperative sugar mills from Maharashtra’s Kolhapur, Solapur and Sangli districts, along with representatives from Karnataka’s Belagavi district, participated in the discussions.

Addressing the gathering, Mohol said the objective of the initiative was to give practical shape to the growth of cooperative sugar mills through an integrated circular economy model under the proposed multi-state cooperative framework.

He said such a structure could create opportunities for converting sugar industry by-products into higher-value products while strengthening rural industrial ecosystems.

According to him, increased use of green energy and bio-based chemicals under the proposed model could help reduce fuel consumption and improve sustainability in the sector.

In addition, Indian Potash Limited presented details of the proposed initiative during the programme, highlighting existing challenges facing the sugar sector and the potential benefits of forming a multi-state cooperative society.

Raman Kumar, Joint Secretary in the Ministry of Cooperation, said Maharashtra, with its strong cooperative ecosystem, could play an important role in adopting and scaling such a model.

Moreover, the programme included discussions with cooperative sugar mill representatives, where participants raised queries and concerns related to the proposed framework.

The government has been focusing on expanding cooperative-led models across sectors as part of broader efforts to strengthen rural economic ecosystems and farmer-centric institutions, according to the ministry.