The Bihar government has started a major initiative to revive the sugar industry in the state. Sugarcane Industry Minister Sanjay Kumar Paswan confirmed on February 10, 2026, that formal orders have been sent to district officials. The government plans to establish 25 new sugar mills and reopen 9 closed ones. This step is taken to create lakhs of jobs and support local farmers.
Which districts will get new sugar mills?
The District Magistrates (DMs) of 25 districts have been asked to identify land for these factories. The government requires about 100 acres of land for each mill. The officials are looking for locations where sugarcane farming is already active on 30,000 to 40,000 acres. This will ensure that farmers can easily supply sugarcane to the mills without high transport costs. A high-level committee led by the Chief Secretary is monitoring this process.
List of Target Districts:
| Patna | Muzaffarpur | Gopalganj | Samastipur |
| Gaya | Siwan | Rohtas | Motihari |
| Bettiah | Purnia | Vaishali | Saran |
| Nawada | Buxar | Bhojpur | Begusarai |
| Khagaria | Jamui | Bhagalpur | Nalanda |
| Banka | Madhepura | Madhubani | Darbhanga |
What is the plan for closed mills and budget?
Apart from new units, the government is working to restart old closed mills. Specific mills in Motipur, Goraul, Warisaliganj, and Banmankhi are on the revival list. The Cooperative Department will take charge of setting up mills in Raiyam and Sakri. To support these changes, the budget for the Sugar Industry Department has been increased to ₹340 crore for the 2026-27 financial year.
These new mills will not just produce sugar. They are designed to produce Ethanol and generate power as well. This will make the factories financially stronger. Currently, only 10 sugar mills are running in the state, and the government has cleared nearly 88% of the dues to farmers. This project is a part of the state’s larger goal to generate one crore employment opportunities.
