Maharashtra’s Sugar Cooperatives Don’t Just Make Sugar — They Make Chief Ministers

Maharashtra's Sugar Cooperatives Don't Just Make Sugar — They Make Chief Ministers

In Sangli district’s dusty town of Walwa, a single sugar factory controls more than sweetness — it controls who gets elected to the state assembly, who gets a bank loan, and whose son gets a government job. I have spent years tracking India‘s cooperative movement, and nowhere is the entanglement between cooperative economics and raw political power more visible than in Maharashtra’s western sugar belt.

This is not a story about agriculture alone. This is the story of how a network of roughly 200 cooperative sugar factories across Maharashtra became the most effective political machine in Indian democracy — one that has produced at least seven chief ministers, dozens of cabinet ministers, and an entire class of rural oligarchs who straddle the worlds of farming, industry, and governance simultaneously.

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UP’s Sugar Belt Has 100+ Cooperative Mills — Most Are Sick, A Few Are Thriving — Here’s the Difference

UP's Sugar Belt Has 100+ Cooperative Mills — Most Are Sick, A Few Are Thriving — Here's the Difference

In Shamli district, barely two hours from Delhi, a rusted padlock hangs on the gates of a cooperative sugar mill that once crushed 2,500 tonnes of cane daily. Weeds push through the concrete yard. The boiler house, silent since the 2019-20 season, looks like an industrial ruin. Seven kilometres east, another cooperative mill — similar vintage, similar capacity — hums through the crushing season, pays farmers within fourteen days, and posted an operating surplus of approximately ₹11 crore last year. I have spent months trying to understand what separates the dead from the living in Uttar Pradesh’s cooperative sugar sector, and the answer is far more uncomfortable than “poor management.”

Uttar Pradesh produces more sugar than any other Indian state — over 12 million tonnes in the 2026-26 season by most estimates. Yet its cooperative sugar mills, once envisioned as farmer-owned engines of rural prosperity, are overwhelmingly sick. Of the 100-plus cooperative mills established across the sugar belt spanning Muzaffarnagar, Shamli, Meerut, Saharanpur, Bijnor, and parts of Rohilkhand, only a fraction operate at viable capacity today. The rest are closed, partially functional, or surviving on government lifelines.

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The Silent Network Powering India’s Milk, Sugar and Cotton Economy

The Silent Network Powering India's Milk, Sugar and Cotton Economy

In Sabar village, Sabarkantha district of Gujarat, a woman named Jashiben walks two kilometres every morning with eight litres of buffalo milk to reach her nearest Primary Agricultural Credit Society (PACS) collection point. She earns roughly ₹480 per day from this routine — money that paid for her daughter’s nursing diploma last year. What Jashiben … Read more