Sugarcane is one of the most important cash crops grown in all tropical and subtropical countries of the world. Sugar factories generate many by-products (bagasse, molasses, press mud & waste materials). Molasses is used in distillery industry for the production of alcohol. Distilleries discharge waste water called as spent wash, which directly not used in agricultural fields because of its high biological oxygen demand (BOD) and chemical oxygen demand (COD). The spent wash contains 30-35% C; 2.31% N; 0.82% P and 9.25% K. There was a remarkable reduction in BOD, COD and salinity after bio-methanization process using methane gas and utilizing methogenic bacteria. The manurial value of the effluents can profitably be used as supplement to fertilizer and organic matter.