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India, being one of the largest producers of sugarcane, offers immense potential for value addition at the farm level. One such traditional yet profitable segment is Jaggery (Gur) production. Jaggery making is a cottage-scale agri-processing activity that not only supports rural livelihoods but also adds value to sugarcane cultivation.

To promote value-added agri-enterprises, NABARD (National Bank for Agriculture and Rural Development), under various schemes, offers subsidy and financial support for setting up jaggery-making units, especially in sugarcane-rich belts of India.

What is a Jaggery Making Unit?

A Jaggery unit involves:

  • Crushing sugarcane to extract juice

  • Boiling the juice in open pans using firewood/biomass

  • Concentrating it to produce solid/semi-solid jaggery (blocks, balls, or powder)

  • Packaging and marketing

Modernization can involve:

  • Semi-mechanized crushers

  • Steam or biomass boilers

  • Cleaner fuel usage

  • Improved hygiene & packaging units

NABARD Subsidy for Agriculture Projects

Why Jaggery Making is a Profitable Rural Business:

  • Strong domestic demand for chemical-free natural sweeteners

  • Export potential (Middle East, Southeast Asia)

  • Low input cost & locally available raw materials

  • Employment generation in rural areas

  • Can be set up near farms in cluster-based models

States with High Potential:

  • Maharashtra – Especially Kolhapur, Sangli, Ahmednagar belt

  • Uttar Pradesh – Muzaffarnagar, Saharanpur, Meerut, Bijnor

  • Bihar – West Champaran, Gopalganj, Samastipur

  • Karnataka – Belagavi, Bagalkot, Mandya

These areas have high sugarcane yield and rural clusters that can benefit from cluster-based jaggery making units.

NABARD Subsidy for Agriculture Projects

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KIP Financial Consultancy Pvt. Ltd.

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