Indian Potash, UPL arm partner to boost Gujarat sugarcane yield

For IPL, the Kodinar mill is a strategic asset. The company entered sugar milling in 2017 to diversify beyond fertilizer distribution and secure captive demand for its potassium and phosphorus products. Higher cane throughput would strengthen the mill's operating margin by spreading fixed costs over more tonnes crushed. It would also give IPL more leverage to market ethanol directly to oil marketing companies.

For UPL, the deal expands its crop-solutions business into Gujarat's cane belt, where it competes with local cooperatives and multinational distributors. UPL sees the project as a proof of concept for large-scale cane advisory services, the companies said.

Farmers around Kodinar stand to benefit from lower input costs and better market access if the programme cuts the intermediary chain. IPL procures cane directly from member farmers at state-set prices. Higher yields reduce the land a grower must commit to cane to earn a target income, freeing acres for other crops.

The mill sits in Gujarat's coastal Saurashtra region, where water availability constrains cane cultivation. Improved irrigation scheduling through digital monitoring could address that constraint directly. Regenerative practices include cover cropping and reduced tillage to improve soil structure and water retention.

The first harvest under the partnership is expected in the 2025-26 season, assuming planting begins in the current monsoon cycle. IPL and UPL plan to expand the acreage if initial results meet internal benchmarks, they said.