Sugar Industry Revival: PM Modi to Launch New Mills in Sakri and Raiyam
Prime Minister Narendra Modi will initiate the construction of two major sugar mills in Bihar on November 20, 2026. The project aligns with a state-wide strategy to establish 25 new facilities within five years, aiming to boost farmer income and industrial employment.
Strategic Expansion of Bihar Sugarcane Infrastructure
Bihar Sugarcane Industries Minister Sanjay Kumar announced on July 29, 2026, that Prime Minister Narendra Modi is scheduled to lay the foundation stones for sugar mills at Sakri in Madhubani and Raiyam in Darbhanga on November 20, 2026. These facilities, managed by the state's Cooperative Department, represent the first phase of a broader mandate to launch 25 sugar mills over the next half-decade. Minister Kumar, flanked by Department Secretary Dharmendra Singh and Cane Commissioner Anil Kumar Jha, confirmed that while production generally begins one to two years after construction starts, active discussions with private investors are already underway.
Fiscal Recovery and Site Reclamations
The state reported a high degree of fiscal discipline regarding agricultural payments, completing 100 percent of sugarcane dues totaling ₹2,137.83 crore for the 2025-26 crushing season. Furthermore, the State Cabinet cleared ₹43 crore in outstanding principal dues for farmers in the Sasamusa region. This financial clearance is intended to pave the way for a private investor to revive the currently shuttered Sasamusa Sugar Mill in Gopalganj.
In Muzaffarpur, the government has reclaimed 266 acres formerly held by M/s Indian Potash Ltd at the site of the defunct Motipur Sugar Mill. This land is earmarked for a multifaceted development, including a new mill, a dedicated sugarcane research center, and various industrial units. Regarding the Marhaura sugar mill, Secretary Dharmendra Singh noted that while the case remains under National Company Law Tribunal (NCLT) review, the administration is seeking 50 to 100 acres of nearby land to facilitate a potential reopening.
Policy Shifts and Technological Partnerships
The recently approved “Bihar Sugar Industry Investment Promotion Policy-2026” shifts the focus toward integrated sugar complexes. These hubs will combine milling operations with distilleries, cogeneration power plants, and Compressed Biogas (CBG) units to diversify revenue streams through ethanol and electricity production. To support this, Bihar has entered into memorandums of understanding with the Sugarcane Breeding Institute in Coimbatore, the Vasantdada Sugar Institute in Pune, and IIT Patna to develop seed varieties tailored to local climates.
- Current sugar recovery rate: 10.3% (exceeding the national average)
- Tenant survey progress: 2.37 lakh farmers identified across 4.91 lakh acres
- New target: 25 mills in five years
- Key initiatives: Seed development and sugarcane mechanization schemes
The state is also expanding its agricultural census. Unlike previous years where data collection was restricted to the traditional sugar belt, officials are now surveying districts where sugarcane has not been historically cultivated to identify new growth corridors.
Source: The Hindu — National
