PM Modi to lay foundation for two sugar mills in Bihar on Nov 20
Prime Minister Narendra Modi will lay the foundation stone for two new sugar mills in Bihar on November 20, 2026, according to State Sugarcane Industries Minister Sanjay Kumar. The mills are planned at Sakri in Madhubani district and Raiyam in Darbhanga district.
Speaking at a press conference on Wednesday, Kumar said the state government aims to establish 25 sugar mills across Bihar. He stated that the new mills would create employment and increase income for sugarcane farmers. The minister was accompanied by Department Secretary Dharmendra Singh, Cane Commissioner Anil Kumar Jha, and Joint Cane Commissioner Vedvrat.
The Sakri and Raiyam sugar mills will be operated under the Cooperative department. Kumar added that the government is exploring every possible measure to open more mills in the state. Investors are in talks with senior officials, he said, and the target is to set up 25 new mills within five years. Production at the new mills is expected to begin within one to two years.
Kumar also reported that sugar mills in the state have made full payment of sugarcane dues amounting to ₹2,137.83 crore for the 2025-26 crushing season. The state cabinet has approved the payment of outstanding principal dues of ₹43 crore from previous seasons for farmers in the Sasamusa area, a step aimed at reviving and reopening the Sasamusa Sugar Mill in Gopalganj.
Additionally, the government has approved taking over 266 acres of land belonging to the closed Motipur Sugar Mill in Muzaffarpur from M/s Indian Potash Ltd. A new sugar mill, a sugarcane research centre, and other industrial units are planned on this land.
The state has also enacted the Bihar Sugar Industry Investment Promotion Policy-2026 to facilitate integrated sugar complexes that include new mills, distilleries, cogeneration power plants, and compressed biogas units. These projects are expected to boost production of sugar, ethanol, electricity, and biogas, while attracting investment and generating employment.
Regarding the Marhaura sugar mill, Secretary Dharmendra Singh said he could not comment as the matter is pending before the National Company Law Tribunal (NCLT). However, he noted that the mill could become operational if 50 to 100 acres of land are available nearby. Singh emphasised the government's efforts to increase sugarcane productivity, acreage, and recovery rate, which currently stands at 10.3%—above the national average.
Measures being implemented include a seed development scheme, sugarcane mechanisation scheme, nursery scheme, and technology expansion programme. The department is conducting a survey of sugarcane farmers across districts, including those not traditionally in the sugar belt. So far, 2.37 lakh farmers have been surveyed, covering 4.91 lakh acres.
