Bihar partners with Indian Potash to reopen two sugar mills, create jobs
Bihar's Cooperative Department Minister Ram Kripal Yadav announced on Wednesday that Indian Potash Ltd (IPL) will set up and operate two sugar mills in the state, marking a significant step towards reviving the closed sugar industry and boosting the rural economy.
The mills will be established at Sakri in Madhubani district and Raiyam in Darbhanga district under the state government's "Samriddh Udyog-Sashakt Bihar" initiative, a part of the Saat Nischay-3 programme. The Minister said the move would infuse strength and energy among local farmers by raising their income and creating employment opportunities at the grassroots level.
Highlighting the state government's resolve to revive closed sugar mills, Mr. Yadav said the Cabinet has already approved the project. "An agreement with IPL has been signed for setting up and running the sugar mills. Production will soon begin within a time-frame," he asserted.
The two sugar mills will also house distilleries, cogeneration power plants, and Compressed Biogas (CBG) units, adding to their economic viability. The Minister assured that the government is committed to reviving other closed sugar mills in a phased manner.
Speaking about the Cooperative Department's broader vision, Mr. Yadav said the state has adopted the Bihar State Cooperative Policy, 2026, aimed at strengthening, modernising, and making the cooperative movement innovation-driven and future-ready. The policy seeks to ensure an effective and extensive role for cooperatives in building a "Developed Bihar", connecting every section of society, particularly youth, women, farmers, entrepreneurs, and disadvantaged communities, with new avenues for self-reliance and collective prosperity.
In the agriculture sector, the department has set a target to construct 350 panchayat-level vegetable collection centres and 50 block-level infrastructure facilities. Primary Vegetable Producer Cooperative Societies (PVCSs) have been set up in all 534 blocks of the state. Each PVCS will receive ₹2 lakh, while nine vegetable federations will get ₹10 lakh each as working capital to expand their operations.
The department has approved schemes worth ₹106.39 crore for creating better infrastructure for vegetable collection, transportation, and marketing. "We are continuously working to ensure that Bihar's vegetables reach every plate. Soon, vegetable booths, on the lines of Sudha Dairy booths, will be opened at various locations through VegFed," the Minister said, adding that this would create new employment opportunities and significantly benefit vegetable-producing farmers.
In another key decision, the implementation of the Pradhan Mantri Fasal Bima Yojana in Bihar has been approved from the Rabi season of financial year 2026-27. Under the scheme, farmers will be assured compensation equivalent to their agricultural costs. Farmers will pay only a nominal premium, with both the state and central governments contributing their respective shares.
The announcements underline the state government's focus on strengthening the rural economy and ensuring holistic development. With the revival of sugar mills, expansion of cooperative infrastructure, and robust crop insurance coverage, the measures aim to uplift farmers and create a sustainable agricultural ecosystem in Bihar.
