Worldwide increasing demands of food, fodder, fuel and other bio-chemicals for erratically increasing population, urbanization and industrialization. Only sugarcane (Saccharum spp.) has great potential as a major feedstock for sugar, biofuel and allied related production. Sugarcane is the lead driver for production of sugar and sweeteners globally. It is considered among the best options and replace the fossil fuels for production of biofuels today due to an exceptional biomass production capacity, high carbohydrate (sugar + fiber) content, and a favourable energy input/output ratio. The conversion of sugarcane biomass into fermentable sugars for second-generation ethanol production is a promising alternative to meet future demands of biofuel production in the world. Biofuels have gained much importance due to the depleting fossil fuel resources and the over-accumulation of CO2 and other greenhouse gases in the environment. Biofuel and paper production from sugarcane can be achieve the targets to replace fossil fuels to scavenge carbon dioxide released into the atmosphere and to attain environmental and economic sustainability. Fermentable sugars (40-60%) of molasses which is diluted with distilled water and by fermentation process (Saccharomyces cerevisae) produce rum (wine). Application of sugarcane by-products, such as press mud, vinasse and bagasse, to improves chemical, physical, and biological properties of soil and enhanced the crop quality and yield. For transfer the live micro-organism from agar slant of laboratory to rhizosphere then sugar press mud play key role in formulating microbial inoculant as suitable carrier. Food yeast Torulopsis utilis, is prepared from molasses used as baker’s and brewer’s yeast in bakery industry. Sugarcane improves the economy of rural population by providing lead source of fodder for livestock management as a sugarcane tops and by-products of sugarcane (molasses treated with urea, mineral mixture treated sugarcane top hays etc.). Scientific interventions have not only helped to improve the cane crop but industrial procedures have also been upgraded resulting in improved production of biofuel, paper, wine etc and other sugarcane by-products used to improve the economy of rural and urban population. However, building a bridge between science and industry requires investments in research, development and transfer of new technologies to the industry as well as specialized personnel to deal with new technological challenges.