Patna, July 29: Prime Minister Narendra Modi will lay the foundation stone for two new sugar mills at Sakri in Madhubani district and Raiyam in Darbhanga district on November 20, marking a major push to revive Bihar’s sugar industry and strengthen the state’s rural economy.
Announcing the projects, Bihar Sugarcane Industries Minister Sanjay Kumar said the upcoming sugar mills would be operated by the Cooperative Department and are expected to generate employment while enhancing the income of sugarcane farmers across the state.
“The State government is committed to fulfilling its resolve to open sugar mills in the state that would not only create employment opportunities in the State but would also increase sugarcane farmers’ income,” Kumar said.
He said the government has set an ambitious target of establishing 25 new sugar mills over the next five years, adding that several investors are already in discussions with senior departmental officials for future projects.
“The two sugar mills of Sakri and Raiyam will be run by the Cooperative Department. We have set a target of setting up 25 new sugar mills in the next five years in the State,” the minister said.
According to Kumar, production at the two proposed mills is expected to commence within one to two years after construction begins.
“It would take one to two years to begin production at these sugar mills,” he said.
Highlighting the government’s support for sugarcane growers, the minister said sugar mills in Bihar had cleared 100 per cent of sugarcane dues amounting to ₹2,137.83 crore for the 2025-26 crushing season.
“The sugar mills have made 100 per cent payment of sugarcane dues amounting to ₹2,137.83 crore to sugarcane farmers in the crushing season of 2025-26,” he said.
Kumar also said the State Cabinet had approved payment of ₹43 crore towards outstanding principal sugarcane dues from previous crushing seasons for farmers in the Sasamusa area of Gopalganj district. The move is expected to facilitate the revival and reopening of the Sasamusa Sugar Mill and attract fresh investment.
“The decision will facilitate the revival and reopening of the Sasamusa Sugar Mill in Gopalganj and is expected to attract investors,” he said.
In another major initiative, the minister said the government had approved taking possession of 266 acres of land belonging to the closed Motipur Sugar Mill in Muzaffarpur from M/s Indian Potash Ltd.
“The government has also approved the proposal of taking over the possession of 266 acres of land belonging to the closed Motipur Sugar Mill. A new sugar mill, a sugarcane research centre, and other industrial units will be established on this land,” Kumar said.
The minister said the recently approved Bihar Sugar Industry Investment Promotion Policy-2026 would pave the way for integrated sugar complexes comprising sugar mills, distilleries, cogeneration power plants and Compressed Biogas (CBG) units.
“The Bihar Sugar Industry Investment Promotion Policy-2026 will facilitate the establishment of integrated sugar complexes, boosting sugar, ethanol, electricity and biogas production while promoting investment, employment and benefiting sugarcane farmers,” he said.
To strengthen sugarcane productivity, the Bihar government has signed Memorandums of Understanding (MoUs) with the Sugarcane Breeding Institute (SBI), Coimbatore, Vasantdada Sugar Institute (VSI), Pune, and IIT Patna. The collaborations aim to provide technical support and develop high-yield sugarcane seed varieties suited to Bihar’s agro-climatic conditions, supporting the state’s long-term vision for a modern and sustainable sugar industry.
