Patna: Bihar is set to expand its sugar industry with the state government targeting the establishment of 25 new sugar mills over the next five years. Sugarcane Industries Minister Sanjay Kumar said Prime Minister Narendra Modi will lay the foundation stones for two new sugar mills at Sakri in Madhubani and Raiyam in Darbhanga on 20 November 2026.
The state government expects the expansion of the sugar industry to create employment opportunities, increase sugarcane cultivation and improve the income of farmers.
PM Modi to Lay Foundation Stones for Two Sugar Mills
Speaking to reporters at the IPRD conference hall in Patna, Sugarcane Industries Minister Sanjay Kumar said the two upcoming sugar mills at Sakri and Raiyam will be operated by the Cooperative Department.
The Minister was accompanied by Department Secretary Dharmendra Singh, Cane Commissioner Anil Kumar Jha and Joint Cane Commissioner Vedvrat.
The government is taking steps to establish more sugar mills across Bihar, with investors also reportedly in discussions with senior officials of the department.
According to the Minister:
- Prime Minister Narendra Modi will lay the foundation stones for the Sakri and Raiyam sugar mills on 20 November 2026.
- The state has set a target of establishing 25 new sugar mills in the next five years.
- It may take around one to two years for newly established sugar mills to begin production.
- The expansion is expected to generate employment and increase the income of sugarcane farmers.
Bihar Targets 25 New Sugar Mills in Five Years
The Bihar government is focusing on expanding the state’s sugar industry by attracting investment and encouraging the establishment of new mills.
The government believes that the development of new sugar mills will have a wider impact on the rural economy by creating jobs and providing a stronger market for sugarcane farmers.
The Minister said the government is making every possible effort to attract investors and establish new sugar mills across the state.
The expansion plan is also expected to encourage higher sugarcane cultivation and improve the overall industrial ecosystem around the sector.
Sugarcane Farmers Receive ₹2,137.83 Crore in Dues
The state government said sugar mills have made 100% payment of sugarcane dues amounting to ₹2,137.83 crore to farmers for the 2025-26 crushing season.
The timely payment of sugarcane dues is expected to strengthen farmers’ confidence in sugarcane cultivation and support the expansion of the crop’s acreage across Bihar.
The government has also taken several measures to improve sugarcane productivity, including initiatives focused on better seeds, mechanisation and modern farming practices.
Sasamusa Sugar Mill Revival Gets Government Support
The Bihar Cabinet has approved the payment of ₹43 crore in outstanding principal sugarcane dues from previous crushing seasons to farmers in the Sasamusa area.
According to the Sugarcane Industries Minister, the decision is expected to facilitate the revival and reopening of the Sasamusa Sugar Mill in Gopalganj.
The government hopes that resolving the outstanding dues will help attract investors for the re-establishment of the closed sugar mill and revive industrial activity in the region.
New Sugar Mill and Research Centre Planned at Motipur
The state government has also approved a proposal to take possession of 266 acres of land belonging to the closed Motipur Sugar Mill in Muzaffarpur from M/s Indian Potash Ltd.
The government plans to use the land for the development of:
- A new sugar mill.
- A sugarcane research centre.
- Other industrial units.
The proposed development is expected to create a broader industrial ecosystem around sugarcane production and processing in the region.
Bihar Sugar Industry Investment Promotion Policy-2026 to Boost Integrated Sugar Complexes
The Bihar government has approved the Bihar Sugar Industry Investment Promotion Policy-2026 to encourage investment in the sugar sector.
Under the new policy, the state aims to facilitate the establishment of integrated sugar complexes comprising multiple facilities.
These complexes are expected to include:
- Sugar mills.
- Distilleries.
- Cogeneration power plants.
- Compressed Biogas (CBG) units.
The integrated approach is expected to increase the production of sugar, ethanol, electricity and biogas while encouraging capital investment and creating employment opportunities.
Marhaura Sugar Mill Case Pending Before NCLT
On the status of the Marhaura sugar mill, Department Secretary Dharmendra Singh said the matter is currently pending before the National Company Law Tribunal (NCLT) and, therefore, he could not comment on when the mill would become operational.
However, he said the state government is making efforts to resolve the issue at the earliest and facilitate the reopening of the mill.The Secretary also noted that a sugar mill near Marhaura could be established if 50 to 100 acres of land becomes available in the vicinity.
Government Focuses on Increasing Sugarcane Productivity
The Bihar government is implementing several programmes aimed at increasing sugarcane productivity, expanding the area under cultivation and improving the sugar recovery rate.
According to the department, the state’s sugar recovery rate currently stands at 10.3%, which is higher than the national average.
The government has introduced several initiatives to promote sugarcane farming, including:
- Seed Development Scheme.
- Sugarcane Mechanisation Scheme.
- Sugarcane Nursery Scheme.
- Sugarcane Technology Expansion Programme.
These initiatives are aimed at improving farming practices, increasing productivity and supporting farmers with better-quality planting material and modern technology.
Survey of Sugarcane Farmers Expanded Across Bihar
The Sugarcane Industries Department is also conducting surveys of farmers in districts where sugarcane cultivation is currently limited or absent.
Earlier, such surveys were mainly conducted in established sugarcane-growing areas. The expanded survey aims to identify opportunities to increase sugarcane cultivation across more districts of Bihar.
So far:
- 2.37 lakh farmers have been surveyed.
- The survey has covered a total area of 4.91 lakh acres.
The government expects the exercise to help identify potential areas for expanding sugarcane cultivation and support the establishment of new sugar mills.
Bihar Signs MoUs with Three Leading Institutions for Sugarcane Development
To support the expansion of the sugar industry and improve sugarcane production, the Bihar government has signed Memorandums of Understanding (MoUs) with three leading institutions in sugarcane research and technology.
These institutions are:
- Sugarcane Breeding Institute (SBI), Coimbatore.
- Vasantdada Sugar Institute (VSI), Pune.
- Indian Institute of Technology (IIT), Patna.
The partnerships are aimed at providing technical assistance and supporting the development and production of sugarcane seed varieties suited to Bihar’s agro-climatic conditions.
Bihar Aims to Build a Stronger Sugar Industry Ecosystem
The government’s plans to establish 25 new sugar mills, revive closed units and develop integrated sugar complexes represent a major push to expand Bihar’s sugar industry.
With new investments, improved sugarcane productivity, farmer-focused schemes and partnerships with leading research and technology institutions, the state aims to create a stronger and more sustainable sugar ecosystem.
The planned expansion is expected to benefit sugarcane farmers, generate employment and support the production of sugar, ethanol, electricity and biogas, while contributing to Bihar’s broader industrial and rural economic development.
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