Madhubani and Darbhanga districts in Bihar’s Mithila region were once known as major centres of sugar production, enjoying prosperity during the British era and the early years after Independence. However, the sugar industry in this region began to decline in the latter half of the 20th century and had virtually collapsed by the end of the 1990s, leaving behind closed mills and a weakened local economy.
With the current government under Chief Minister Nitish Kumar signalling fresh efforts to revive the sector, hopes have once again been raised. Plans are being discussed to reopen nine closed sugar mills, including those at Lohat, Sakri and Raiyam, and to set up around 25 new sugar mills across Bihar. These announcements have renewed optimism that the Mithila region could see an economic turnaround.
Historically, Madhubani and Darbhanga were important sugar-producing districts with three major mills—Lohat and Sakri in Madhubani, and Raiyam in Darbhanga. These mills marked the beginning of industrialisation in a largely agrarian region, helping the shift from traditional jaggery production to organised sugar manufacturing in the early 1900s.
While many have welcomed the renewed talk of reopening the mills, some remain cautious. Veteran politician and social activist Shubhesh Chandra Jha pointed out that similar promises have been made in the past, particularly during election periods, but were never fully implemented. He recalled that in 2015, the state government had even created a separate sugarcane development ministry, but the initiative failed to deliver lasting results.
The sugar industry in Mithila has deep historical roots. The Lohat Sugar Mill in Madhubani, established in 1914 by the Darbhanga Sugar Company, was the region’s first major sugar factory and a symbol of early industrial growth in Bihar. Spread over 225 acres, it even had a narrow-gauge railway to transport sugarcane. Around the same time, the Raiyam Sugar Mill began operations in Darbhanga. Later, in the 1930s, the Sakri Sugar Mill was set up in Madhubani district, reportedly using profits generated from the Lohat unit.
By the 1950s, Bihar had emerged as a leading sugar-producing state with around 33 operational mills. In the 1970s, these mills were nationalised and brought under the Bihar State Sugar Corporation (BSSC). For decades, they played a crucial role in the regional economy by providing employment, supporting sugarcane farmers, and contributing to infrastructure development.
According to Aghnu Yadav, general secretary of the Mill Workers Union of Lohat, Sakri and Raiyam, the decline began in the 1980s due to poor management, mounting financial losses, outdated technology, low sugarcane yields, delayed payments to farmers, and stiff competition from more efficient mills in states like Uttar Pradesh and Maharashtra. By the 1990s, the mills had become sick units or shut down entirely—Raiyam closed in 1993–94, followed by Lohat and Sakri in 1996–97.
The closures left thousands of workers jobless, farmers unpaid, and large tracts of mill land lying unused, pushing the region into economic stagnation. While efforts have occasionally been made to repurpose these sites, most attempts have failed.
Expressing cautious optimism, Yadav said that if the proposed revival plans are implemented effectively, they could restore economic activity in the region, provide much-needed employment, and once again benefit sugarcane farmers in Mithila.
