Patna: Prime Minister Narendra Modi will lay the foundation stones for two sugar mills at Sakri in Madhubani and Raiyam in Darbhanga on November 20, 2026, Bihar Sugarcane Industries Minister Sanjay Kumar said on Wednesday.
Kumar made the announcement at a media briefing at the Information and Public Relations Department’s conference hall in Patna. He said the state government has set a target of establishing 25 new sugar mills over the next five years.
Two Mills To Be Run By Cooperative Department
The proposed sugar mills at Sakri and Raiyam will be operated by the Cooperative Department, Kumar said.
The minister said the government was taking steps to establish more sugar mills in Bihar, with investors already in contact with senior officials. He added that it could take one to two years for new mills to begin production after their establishment.
Kumar said the expansion of the sugar industry would create employment opportunities and help increase the income of sugarcane farmers.
He was accompanied by Sugarcane Industries Department Secretary Dharmendra Singh, Cane Commissioner Anil Kumar Jha and Joint Cane Commissioner Vedvrat.
Rs 2,137.83 Crore Sugarcane Dues Paid
Kumar said sugar mills had made 100 per cent payment of sugarcane dues amounting to Rs 2,137.83 crore to farmers for the 2025-26 crushing season.
The minister also said the state cabinet had approved payment of Rs 43 crore in outstanding principal sugarcane dues from previous crushing seasons to farmers in the Sasamusa area.
According to Kumar, the decision is expected to facilitate the revival and reopening of the Sasamusa Sugar Mill in Gopalganj and help attract investors for its re-establishment.
266 Acres Identified For Motipur Sugar Mill Land
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 Indian Potash Ltd, Kumar said.
A new sugar mill, a sugarcane research centre and other industrial units are proposed to be established on the land, he added.
New Policy To Promote Integrated Sugar Complexes
Kumar said the Bihar government has approved the Bihar Sugar Industry Investment Promotion Policy-2026 to encourage investment in integrated sugar complexes.
The complexes will include sugar mills, distilleries, cogeneration power plants and Compressed Biogas (CBG) units. The government expects the projects to increase the production of sugar, ethanol, electricity and biogas while attracting capital investment and creating employment.
The policy is also aimed at benefiting sugarcane farmers through the expansion of the sugar industry, the minister said.
Marhaura Mill Issue Pending Before NCLT
On the reopening of the Marhaura sugar mill, Department Secretary Dharmendra Singh said he could not comment on the matter as it is currently pending before the National Company Law Tribunal (NCLT).
Singh said the state government was making efforts to resolve the issue and facilitate the reopening of the mill.
He added that the sugar mill near Marhaura could be reopened if 50 to 100 acres of land were made available nearby.
Government Expands Sugarcane Development Measures
Singh said the government was taking measures to increase sugarcane productivity, acreage and the sugar recovery rate in Bihar. The state’s sugar recovery rate currently stands at 10.3 per cent, which he said is higher than the national average.
The department has introduced measures including a seed development scheme, sugarcane mechanisation scheme, sugarcane nursery scheme and sugarcane technology expansion programme.
The department is also surveying farmers in districts where sugarcane cultivation is not currently widespread. Earlier, such surveys were conducted only in established sugarcane-growing areas, Singh said.
So far, 2.37 lakh farmers have been surveyed, covering 4.91 lakh acres of land, he added.
MoUs Signed With Three Institutions
The Bihar government has signed memoranda of understanding with three institutions — the Sugarcane Breeding Institute (SBI), Coimbatore, Vasantdada Sugar Institute (VSI), Pune, and the Indian Institute of Technology (IIT), Patna — for the development of sugarcane production in the state.
The agreements are aimed at providing technical assistance and supporting the development and production of sugarcane seed varieties suited to Bihar’s agro-climatic conditions.
The government expects the collaboration to support the expansion of sugarcane cultivation alongside plans to establish new sugar mills across the state.
