Compliance Performance
Uttar Pradesh

Report of 2011 - Performance Audit on Sale of Sugar Mills of Uttar Pradesh State Corporation Ltd of Government of Uttar Pradesh

Date on which Report Tabled:
Wed 30 May, 2012
Date of sending the report to Government:
Government Type:
Sector Taxes and Duties,Industry and Commerce


Sugar is produced in over 122 Countries across the World. It is estimated that the world production would be around 167 million metric tonne in the 2010-11 International Sugar Season (October-September). India is the second largest sugar producer in the world after Brazil. It contributes approximately 14.68 per cent of the total sugar production in the world. Uttar Pradesh with its share of 27 per cent is the second largest producer of sugar in the country after Maharashtra.

The Uttar Pradesh State Sugar Corporation Limited (UPSSCL) was established in 1971, under the Companies Act, 1956 as a wholly owned undertaking of the Government of Uttar Pradesh. During the years 1971 to 1989, 28 mills were acquired by the Company while one mill was purchased in open auction in 1974. Six mills were also established between 1974 and 1988. During the years 2001 to 2003 the Company, while retaining 11 operating mills, transferred 18 mills (ten closed and eight unviable) to newly formed subsidiary, viz.- Uttar Pradesh Rajya Chini Evam Ganna Vikas Nigam Limited (UPRCGVNL) and four mills to three other subsidiaries of UPSSCL.

Two mills (Doiwala and Kichcha sugar mills) were transferred to Uttarakhand after partition of Uttar Pradesh in the year 2002. UPSSCL is the only Public Sector Company engaged in sugar production in Uttar Pradesh. During the period from 2005-06 to 2009-10 the production by the Company ranged from 93.54 to 297.60 thousand tonnes.

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