PM Modi to lay foundation stone for two sugar mills in Bihar on Nov 20

Bihar Government targets opening 25 new sugar mills in the next five years, says Minister. Bihar Sugar Industry Investment Promotion Policy-2026 to facilitate setting up of integrated sugar complexes.

Published – July 30, 2026 07:17 am IST – PATNA

By Amit Bhelari

Prime Minister Narendra Modi will lay the foundation stone for two sugar mills at Sakri in Madhubani and Raiyam in Darbhanga on November 20, 2026, Bihar’s Sugarcane Industries Minister Sanjay Kumar announced on Wednesday (July 29, 2026).

“The State government has set a target of establishing 25 sugar mills in the State. The Prime Minister will lay the foundation stone for two sugar mills at Sakri in Madhubani and Raiyam in Darbhanga on November 20 (2026) in the State,” Mr. Kumar said while addressing the press.

The State government is committed to fulfilling its resolve to open sugar mills that will not only create employment opportunities but also increase sugarcane farmers’ income, he added.

Key Details

• Sugar mills at Sakri and Raiyam will be run by the Cooperative department.
• Target: 25 new sugar mills to be set up in Bihar over the next five years.
• Timeline: It will take one to two years to begin production at the new mills.
• Investors are in touch with senior department officials, the Minister said.

Sugarcane Dues and Payments

• Sugar mills have made 100% payment of sugarcane dues amounting to ₹2,137.83 crore to farmers for the 2025-26 crushing season.
• The State cabinet has approved payment of outstanding principal sugarcane dues of ₹43 crore for previous crushing seasons to farmers in the Sasamusa area.
• This decision will facilitate the revival and reopening of the Sasamusa Sugar Mill in Gopalganj and is expected to attract investors for its re-establishment.

Motipur Sugar Mill Land

The government has approved taking over possession of 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 will be established on this land.

Bihar Sugar Industry Investment Promotion Policy-2026

The State government has approved the “Bihar Sugar Industry Investment Promotion Policy-2026”, which will facilitate the setting up of integrated sugar complexes housing:

• New sugar mills
• Distilleries
• Cogeneration power plants
• Compressed Biogas (CBG) units

These projects will boost production of sugar, ethanol, electricity, and biogas, while promoting capital investment, generating employment, and benefiting sugarcane farmers.

Marhaura Sugar Mill

In response to a query about when the Marhaura sugar mill will become operational, Department Secretary Dharmendra Singh said he could not comment as the matter is currently pending at the NCLT. However, the State government is making efforts to resolve the issue at the earliest.

The sugar mill near Marhaura could be opened if 50 to 100 acres of land becomes available nearby, Mr. Singh added.

Sugarcane Productivity and Expansion

The government is taking steps to increase sugarcane productivity, acreage, and the sugar recovery rate, which currently stands at 10.3% — better than the national average.

Measures for expansion and promotion of sugarcane farming include:

• Seed development scheme
• Sugarcane mechanisation scheme
• Sugarcane nursery scheme
• Sugarcane technology expansion programme

The department is also conducting a survey of sugarcane farmers in districts where sugarcane is not currently grown.