Patna: Bihar’s sugarcane farmers in Sakri and Raiyam are set to receive a major boost as Prime Minister Narendra Modi is scheduled to lay the foundation stones for two new sugar mills in the state on November 20, 2026. Bihar Sugarcane Industries Minister Sanjay Kumar said preparations are underway for the foundation-laying ceremony at Sakri in Madhubani district and Raiyam in Darbhanga district.
Speaking at a press conference at the Information and Public Relations Department (IPRD) auditorium, Minister Sanjay Kumar said the Bihar government has set an ambitious target of establishing 25 new sugar mills in the state over the next five years. He said Prime Minister Modi will lay the foundation stones for the Sakri and Raiyam sugar mills on November 20. According to the minister, the expansion of the sugar industry will create new employment opportunities, attract investment and help increase the income of sugarcane farmers.
Sakri and Raiyam Sugar Mills to Be Operated by Cooperative Department
The minister said both the Sakri and Raiyam sugar mills will be operated by the Cooperative Department. The state government is making efforts to establish more sugar mills and several potential investors are already in discussions with senior officials. The government expects the new mills to begin production within one to two years after their establishment.
Bihar Clears Dues of Sugarcane Farmers
The state government has also highlighted progress in clearing farmers’ cane payments. According to the minister, during the 2025-26 crushing season, sugar mills cleared 100% of the ₹2,137.83 crore dues owed to sugarcane farmers.
Regarding the closed Sasamusa Sugar Mill in Gopalganj, the state cabinet has already approved payment of ₹43 crore in principal dues owed to sugarcane farmers from previous crushing seasons. The move is expected to support efforts to revive the mill and attract investors for its restoration and reopening.
New Sugar Mills to Come With Ethanol, Power and Biogas Units
Bihar is also planning to develop integrated sugar complexes rather than standalone sugar mills. The state government has approved the Bihar Sugar Industry Investment Promotion Policy 2026, under which new sugar projects can include sugar mills along with distilleries, co-generation power plants and compressed biogas (CBG) units.
These integrated projects are expected to increase the production of sugar, ethanol, electricity and biogas, while creating employment and attracting private investment. The government believes the expansion of the sugar industry will also strengthen the market for sugarcane produced by farmers in the state.
Motipur Sugar Mill Land to Be Used for New Industrial Projects
The Bihar government has approved a proposal to take possession of 266 acres of land of the closed Motipur Sugar Mill in Muzaffarpur from Indian Potash Limited. The land is proposed to be used for setting up a new sugar mill, a sugarcane research centre and other industrial units.
The government is also working to resolve the issue surrounding the closed Marhaura Sugar Mill. Department Secretary Dharmendra Singh said the matter is currently pending before the National Company Law Tribunal (NCLT) and therefore no detailed comment could be made at this stage. He said the state government is making efforts to resolve the matter at the earliest. He also said a new sugar mill could be established near Marhaura if 50–100 acres of suitable land becomes available.
Bihar Targets Higher Sugarcane Production and Recovery
The state government is taking several measures to increase sugarcane acreage, productivity and sugar recovery. According to the department, Bihar’s current sugar recovery rate is 10.3%, higher than the national average.
To encourage sugarcane cultivation, the government has introduced programmes such as the Seed Development Scheme, Sugarcane Mechanisation Scheme, Sugarcane Nursery Scheme and Sugarcane Technology Extension Programme. The department is also conducting surveys in districts where sugarcane cultivation has not traditionally been carried out, with the aim of identifying new areas for expanding cultivation.
Bihar Signs MoUs With Three Major Institutions
To strengthen sugarcane research, improve productivity and support the development of new sugar mills, the Bihar government has signed Memorandums of Understanding (MoUs) with three leading institutions: the Sugarcane Breeding Institute (SBI), Coimbatore; Vasantdada Sugar Institute (VSI), Pune; and IIT Patna.
The agreements are aimed at developing improved sugarcane varieties suited to Bihar’s agro-climatic conditions and providing technical support to farmers and the sugar industry.
The planned Sakri and Raiyam sugar mills, along with Bihar’s broader target of establishing 25 new sugar mills, mark a significant push to revive and expand the state’s sugar industry. The government’s focus on integrated sugar complexes, ethanol, co-generation and CBG could further diversify the sector and create additional revenue opportunities for sugar mills and sugarcane farmers.
