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Bihar Government to Introduce Incentive Policy and Reopen Closed Sugar Mills, Plans 25 New Units

A two-day seminar in Patna heard plans to introduce a new industrial incentive policy, revive closed sugar mills and establish 25 new units as the state seeks to boost sugarcane production and support farmers.

Lakshita Kashyap by Lakshita Kashyap
March 9, 2026
in Bihar
Reading Time: 2 mins read
Bihar Government to Introduce Incentive Policy and Reopen Closed Sugar Mills, Plans 25 New Units
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Patna: The Bihar government plans to introduce a new incentive policy aimed at promoting industrial growth and revitalising the state’s sugarcane sector, senior ministers said at the opening of a two-day sugarcane technology seminar in Patna on Monday.

The seminar, organised by the state’s sugarcane industry department at Gyan Bhawan, brought together policymakers, scientists and farmers to discuss ways to revive closed sugar mills, establish 25 new mills and increase sugarcane production in the state.

Deputy chief minister Samrat Choudhary said the proposed Incentive Policy 2026 would aim to strengthen industry and create employment. He said the government was working on identifying migrant workers from Bihar and providing them job opportunities within the state over the next five years.

Choudhary said Bihar once played a leading role in sugarcane cultivation and sugar production but had since fallen behind. He urged agricultural scientists and farmers to combine traditional farming knowledge with modern technology to improve productivity.

“The government is working to reopen closed sugar mills and establish new ones,” he said, adding that 10 sugar mills are currently operational in the state. He also said the establishment of 25 new mills had been promised during election campaigns by national leaders and was now being pursued under the leadership of chief minister Nitish Kumar.

Deputy chief minister and revenue minister Vijay Kumar Sinha said Bihar had been a major centre of sugar production at the time of independence but the industry declined over the years.

He said the state once had 16 sugar mills but several closed due to adverse circumstances. “Today 10 mills are operational, and with collective effort the sector can regain its past strength,” he said.

Sinha said the government had launched schemes to support sugarcane farmers, including the provision of free seeds for cultivation of up to five acres and subsidies for equipment. He added that efforts were being made to establish mills in both north and south Bihar while encouraging the adoption of modern agricultural technologies.

Industry minister Dilip Jaiswal said the fertile land of north Bihar made the region well suited for sugarcane cultivation. He said the state had introduced the Industrial Investment Promotion Scheme 2016 and a new ethanol promotion policy to encourage investment in the sector.

“Sugarcane will not only produce sugar but also contribute to fuel production,” Jaiswal said, referring to the use of cane for ethanol. He also highlighted the need to address issues such as waterlogging and pest attacks while ensuring timely payments to farmers.

Presiding over the event, the sugarcane industry minister Sanjay Kumar said the government had increased sugarcane prices in response to farmers’ demands and was implementing several schemes to boost production.

He said the state cabinet had proposed restoring closed sugar mills and establishing new ones, and a high-level committee led by the chief secretary had been formed to oversee the process. Efforts were also under way to address waterlogging affecting about 66,000 acres of farmland, he added.

The chief secretary, Pratyaya Amrit, said industrial development was a key priority for the government. He said Bihar had resolved to reopen closed sugar mills and establish 25 new units as part of broader efforts to boost investment, employment and economic growth.

The seminar drew around 700 farmers and 100 scientists on its opening day. Experts from research institutes, representatives of sugar mills and agricultural universities, and officials from industry associations also attended the event to discuss technological innovations and strategies to increase sugarcane productivity.

Tags: BiharBihar FarmersBihar GovernmentBihar NewsIncentive PolicyIndustrial DevelopmentSugar IndustrySugar Mills

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