Bihar's sugar industry is set for a major revival as the state government moves forward with plans to reopen long-closed sugar mills and establish 25 new sugar factories over the next five years. Prime Minister Narendra Modi is scheduled to lay the foundation stone for two new sugar mills in Sakri (Madhubani) and Raiyam (Darbhanga) on November 20, marking a significant step toward strengthening the state's sugar and ethanol sector.
The Bihar government has announced an ambitious initiative to revive the state's sugar industry by reopening defunct sugar mills and promoting fresh investments in the sector. As part of this effort, Prime Minister Narendra Modi will lay the foundation stone for new sugar mills at Sakri in Madhubani district and Raiyam in Darbhanga district on November 20. The project is expected to provide sugarcane farmers with better market access, reduce transportation costs, and boost agricultural-based industries across the region.
For several years, the Sakri and Raiyam sugar mills have remained non-operational, forcing local sugarcane growers to transport their produce to distant mills. The establishment of new mills is expected to ensure timely procurement of sugarcane, lower logistics expenses, and generate significant employment opportunities in the surrounding areas. The Bihar government aims to complete construction and begin commercial operations within one to two years after the foundation is laid.
The proposed projects will be developed through the state's Cooperative Department as part of Bihar's broader strategy to strengthen its sugar economy. Under a newly introduced investment promotion policy, the government has set a target of establishing 25 new sugar mills across the state over the next five years. Officials believe the initiative will attract private investment, encourage sugarcane cultivation, and stimulate rural economic growth.
Unlike traditional sugar factories, the new facilities will be developed as integrated sugar complexes capable of producing not only sugar but also ethanol, biogas, and renewable power. This integrated model is expected to improve the financial viability of the mills while supporting India's clean energy and ethanol blending objectives.
The state government is also working to revive several other closed sugar mills. Funds have already been approved for the restoration of the Sasamusa Sugar Mill in Gopalganj, while legal and land-related issues concerning the Motipur Sugar Mill in Muzaffarpur are being addressed. Efforts are also underway to resolve disputes linked to the Marhaura Sugar Mill in Saran district.
Alongside industrial revival, Bihar continues to support sugarcane farmers through various development schemes. Farmers are receiving subsidies for modern agricultural machinery, access to improved sugarcane seed varieties, and assistance under mechanization and seed development programmes aimed at reducing cultivation costs and improving productivity. According to the state government, sugar mills in Bihar completed ₹2,137.83 crore in cane payment to farmers during the 2025-26 crushing season, reinforcing farmer confidence and encouraging higher sugarcane production.
The revival of the Sakri and Raiyam sugar mills is expected to provide a significant economic boost to the Mithilanchal region by creating employment, strengthening the local sugarcane value chain, and expanding opportunities in sugar, ethanol, and renewable energy production. If completed on schedule, the projects could become a key milestone in Bihar's efforts to rebuild its sugar industry and enhance the livelihoods of thousands of sugarcane farmers.
