Patna: The Bihar government has launched a dedicated investment policy for the sugarcane industry, offering financial and land incentives to attract investors and expand sugar processing capacity in the state. Under the Bihar Sugarcane Industry Investment Promotion Policy-2026, eligible investors setting up new sugar mills can receive a total grant of up to ₹70 crore over five years.
Under the policy, a new sugar mill meeting the eligibility criteria will receive ₹14 crore annually for five consecutive years. Bihar Sugarcane Commissioner Anil Kumar Jha said the grant will be paid in equal instalments, with the first instalment released one month after the mill starts commercial operations.
To qualify for the incentive, a new sugar mill must have a minimum sugarcane crushing capacity of 3,500 tonnes per day (TCD). Projects exceeding this threshold will be eligible for additional financial support, with the government providing ₹2 crore for every additional 100 TCD of capacity above 3,500 TCD. 
The policy also includes substantial land incentives for new sugar mill projects. A mill with a crushing capacity of 5,000 TCD can receive up to 40 acres of government land on lease for a token payment of Re 1. Projects with a minimum capacity of 3,500 TCD can receive up to 25 acres under similar terms. The government will also reimburse registration fees and stamp duty on land purchased for setting up new sugar mills.
Existing operational sugar mills can also benefit from the policy when expanding their crushing capacity. The government will provide ₹15 crore for an expansion of 1,000 TCD, along with an additional ₹1.5 crore for every further 100 TCD of capacity added.
Jha said Bihar has introduced a standalone investment framework specifically for the sugarcane industry, unlike states where sugarcane and sugar industry incentives are included under broader industrial policies. He said the policy has been designed to provide dedicated support for investment in sugar mills and related processing capacity.
The Bihar government has set a target of establishing 25 new sugar mills and reviving nine closed mills over the next five years. The initiative is aimed at attracting fresh investment, increasing sugarcane processing capacity, creating employment and supporting the revival and expansion of Bihar’s sugar industry.
The new policy is expected to strengthen Bihar’s sugarcane ecosystem by encouraging new projects as well as capacity expansion at existing mills, while providing investors with financial assistance and land-related incentives.
