Bihar plans new sugar mills, the revival of closed units

Patna: The Bihar government is moving ahead with plans to set up new sugar mills and restart closed units in a bid to boost employment, PTI reported on Tuesday.

Sanjay Paswan, Minister of Sugarcane Industries, told reporters that the department has asked district collectors in 25 districts to identify and acquire suitable land for the proposed mills. The districts include Muzaffarpur, Gopalganj, Samastipur, Gaya, Sheohar, Siwan, Rohtas, Motihari, West Champaran, and Patna.

He said job creation remains a priority for the state, which aims to provide employment to one crore youth over the next five years. Chief Minister Nitish Kumar has repeatedly stressed the need to expand job opportunities to reduce migration from Bihar, and new sugar mills are expected to support that goal.

The minister added that the government is also considering reopening several closed mills. Talks are underway to revive the unit at Warisaliganj, while proposals for the Raiyam and Sakri mills in Darbhanga and Madhubani districts will soon be placed before the cabinet.

A committee led by the chief secretary has been formed to review the current condition of sugar mills and recommend steps for improvement. The panel is expected to submit its report shortly. Paswan said the government is targeting the reopening of the Sakri, Raiyam and Sasamusa mills within a year.

Addressing concerns about farmers shifting away from sugarcane cultivation, he said the department is holding seminars, running farmer-focused schemes and engaging directly with growers to resolve their problems.

On pricing, Paswan noted that most mills in Bihar are privately owned and that cane prices are decided with their agreement. The government aims to keep rates close to those in Uttar Pradesh, where sugarcane is priced at around Rs400 per quintal, but warned that forcing higher prices could delay payments to farmers.

He added that about 84% of farmers in the state currently receive payments within 15 days.

For the 2025–26 crushing season, the state has set the State Advised Price (SAP) at Rs380 per quintal for the super grade, Rs360 for the general grade and Rs330 for the low-grade variety at mill gates. The minister also said steps are being taken to tackle waterlogging, which has been affecting sugarcane cultivation.

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