Bihar Moves to Reopen Closed Sugar Mills, Plans 25 New Units
The Bihar government is preparing a new industrial incentive policy aimed at revitalising the state’s sugar industry, with plans to reopen closed mills and establish 25 new sugar units to boost rural employment and agricultural growth.
The proposed Incentive Policy 2026 was discussed during a two-day sugarcane technology seminar held at Gyan Bhawan in Patna. The event brought together policymakers, agricultural scientists, industry representatives and farmers to explore strategies for strengthening the sugarcane sector and improving productivity. Deputy Chief Minister Samrat Choudhary said the policy will focus on reviving Bihar’s once-strong sugar economy while generating new job opportunities within the state. The initiative is part of the government’s broader strategy to attract industrial investment and reduce migration by creating employment locally.
Officials noted that Bihar had historically been one of India’s key sugar-producing regions, but the sector declined over the decades due to financial losses, outdated technology and the closure of several factories. While the state once had around 16 sugar mills, only about 10 are currently operational, highlighting the need for a large-scale revival effort. Under the new policy framework, the government intends to adopt a dual strategy. The first component involves restarting defunct sugar mills, while the second focuses on establishing 25 new mills across different districts to expand production capacity. A high-level committee led by the state’s chief secretary has been formed to oversee the revival process and coordinate policy implementation.
According to officials, the revival programme is expected to have a significant impact on the rural economy. Sugar mills act as anchor industries in many agricultural districts because they provide stable markets for sugarcane farmers and generate employment in transport, logistics, processing and related services. The government also plans to integrate modern technology and scientific farming practices to improve sugarcane yields. Agricultural experts at the seminar emphasised that increasing productivity through improved seed varieties, irrigation methods and digital technologies could help Bihar compete with leading sugar-producing states such as Maharashtra and Uttar Pradesh.
Another key objective of the policy is to address structural challenges affecting the sector. Officials said efforts are underway to tackle issues such as waterlogging on nearly 66,000 acres of farmland, which has affected sugarcane cultivation in some regions. Industry analysts believe the proposed expansion could significantly strengthen Bihar’s agro-industrial base. By linking sugarcane cultivation with modern processing facilities, the state could create a stronger value chain that benefits farmers, entrepreneurs and local communities.
If implemented successfully, the policy could mark a major turnaround for Bihar’s sugar industry. The revival of old mills and the creation of new units are expected to increase agricultural income, stimulate rural development and contribute to the state’s broader goal of accelerating industrial growth.
