The First co-operative sugar factory was installed in year 1957 in district Nainital ( currently in Distt. Udham Singh Nagar). It was inaugurated by India's first Prime Minister Pt. Jawahar Lal Nehru on 16th Feb,1959. Its successful operation brought a new enthusiasm in U.P. and consequently other new co-operative sugar mills were installed.

During 1959 to 1971, there were only five co-operative sugar factories in U.P. Currently there are 28 units in U.P. in which 6 in western zone, 14 in central zone and rest 8 in eastern zone. Five Sugar mill namely Dhuriapar, Sathion, Aurai, Powayan & Majhola are not in operation. Thus a total 23 sugar factories are functional in U.P in co-operative sector with total crushing capacity of 60000 TCD.