6 November 2026
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Bihar to Introduce Incentive Policy 2026, Plans to Reopen Closed Sugar Mills and Set Up 25 New Units

Bihar Moves to Revive Sugar Industry, Incentive Policy 2026 and 25 New Mills Planned
Indian Masterminds Stories

The Bihar government is set to introduce a new Incentive Policy 2026 aimed at promoting industrial growth in the state and reviving the sugar industry. The announcement was made during a two-day sugarcane technology seminar organized by the Sugarcane Industry Department at Gyan Bhawan in Patna on March 9.

Senior leaders including Deputy Chief Minister and Home Minister Samrat Chaudhary, Deputy Chief Minister and Revenue and Land Reforms Minister Vijay Kumar Sinha, Industry Minister Dr. Dilip Kumar Jaiswal, and Chief Secretary Pratyaya Amrit attended the event. Sugarcane Industry Minister Sanjay Kumar presided over the programme.

The government has also reaffirmed its commitment to reopen closed sugar mills and establish 25 new ones in the state.

Read also: Bihar Government Offers Attractive Subsidies to Promote Organic Farming and Boost Farmers’ Income

Incentive Policy 2026 to Boost Industry

Deputy Chief Minister Samrat Chaudhary announced that the state government will soon introduce Incentive Policy 2026 to promote industrial development in Bihar.

He said the policy would aim to attract investment and create employment opportunities within the state. According to him, workers who migrate outside Bihar for employment will be identified and provided job opportunities in the state within the next five years.

The government has already started working in this direction, he added.

Efforts to Revive Bihar’s Sugar Industry

Speaking at the seminar, Samrat Chaudhary said Bihar was once a leading state in sugarcane cultivation and sugar production but had gradually fallen behind over the years.

He said the government is now working to revive the sugar sector by restarting closed mills and establishing new ones.

Currently, nine sugar mills are operational in Bihar, while several others remain closed.

The Deputy Chief Minister noted that during election rallies, the Prime Minister and the Union Home Minister had announced that 25 new sugar mills would be established in Bihar, and the state government is now moving forward to implement that promise under the leadership of Chief Minister Nitish Kumar.

Need to Combine Traditional Methods with Technology

Samrat Chaudhary also appealed to agricultural scientists and sugarcane farmers to combine traditional farming practices with modern technology to improve production.

He emphasized the need to focus on:

• Natural farming

• Use of improved seeds

• Effective medicines and pest control

• Addressing challenges faced by farmers

He also urged stakeholders to adopt artificial intelligence and modern agricultural technologies to strengthen the sector.

Bihar Once a Leader in Sugar Production

Industry Minister Dr. Dilip Kumar Jaiswal said Bihar has historically been one of the leading states in sugar production in India.

He pointed out that the fertile land of North Bihar is highly suitable for sugarcane cultivation and that the government is working to revive the sector.

He highlighted several initiatives including:

• Industrial Investment Promotion Scheme 2016

• Ethanol promotion policy

According to him, sugarcane can now be used not only for sugar production but also for ethanol and fuel, creating new economic opportunities.

He also acknowledged challenges such as waterlogging in sugarcane fields, adding that the government is working to address these issues and ensure timely payments to farmers.

Sugar Mills Closed Due to Negative Influences: Vijay Kumar Sinha

Deputy Chief Minister and Revenue Minister Vijay Kumar Sinha said Bihar was far ahead in the sugarcane sector at the time of independence.

However, he stated that 16 sugar mills that once operated in the state were gradually shut down due to negative influences and poor conditions.

At present, only nine mills are operational, but the government is determined to restore the state’s lost legacy in the sugar industry.

He added that if all stakeholders work together, Bihar can regain its position in the sector.

Support Schemes for Sugarcane Farmers

The state government has introduced several schemes to support sugarcane farmers.

According to Vijay Kumar Sinha:

• Farmers are being given free sugarcane seeds for cultivation up to five acres

• Agricultural machinery is being provided on subsidy

• Advanced technologies are being introduced for sugarcane cultivation

He said the government is committed to improving the livelihoods of small farmers and agricultural labourers.

Government Focus on Farmers’ Welfare

Presiding over the programme, Sugarcane Industry Minister Sanjay Kumar said the government is continuously working in the interest of sugarcane farmers.

He noted that the price of sugarcane has been increased based on farmers’ demands.

Sanjay Kumar also said that Prime Minister Narendra Modi once remarked that if sugar is produced from Bihar’s mills, he would gladly drink sweet tea made from it.

He added that the government began working on the revival of sugar mills immediately after forming the government, with the issue being discussed in the first cabinet meeting under Chief Minister Nitish Kumar.

High-Level Committee Formed

To address the issue of closed sugar mills and expansion of the industry, the state government has formed a high-level committee headed by Chief Secretary Pratyaya Amrit.

The committee is tasked with identifying solutions to revive the sugar industry and increase production.

Sanjay Kumar also highlighted efforts to address waterlogging issues affecting agriculture. Work is currently underway to free about 66,000 acres of land from waterlogging.

Industrial Growth and Employment Priority

Chief Secretary Pratyaya Amrit said the government’s top priority is industrial development and employment generation.

Under the Saat Nischay-3 programme, efforts are being made to bring a major transformation in the industrial sector.

He noted that the first sugar mill in the country was established in Madhaura, Bihar, in 1904, highlighting the state’s historic role in the sugar industry.

Experts Discuss Sugarcane Research and Heritage

Additional Secretary of the Sugarcane Industry Department K. Senthil Kumar welcomed the guests and said the seminar was organised to benefit farmers through scientific knowledge and improved farming practices.

Renowned scientists also participated in the seminar.

Dr. Punyavrat Suvimalendu Pandey, Vice Chancellor of Dr Rajendra Prasad Central Agricultural University, Pusa, spoke about India’s sugarcane heritage.

He explained that the Imperial Agricultural Research Institute was established in Pusa in 1905, which later developed into the Sugarcane Research Institute in 1934 focusing on varieties suitable for eastern India.

Following the 1934 Bihar–Nepal earthquake, the main institute was shifted to New Delhi, though sugarcane research activities continued in Bihar.

Vote of Thanks

The vote of thanks was delivered by Sugarcane Commissioner Anil Kumar Jha, who expressed gratitude to the dignitaries, scientists, and farmers who participated in the seminar.

Read also: Bihar Government to Transform Gaya-Dobhi NH into Green Corridor with 50,000 Fruit Trees


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