Bihar has also been counted among the major sugar producing states of the country. There was a time when sugarcane and sugar industry played an important role in the economy of the state. But gradually the sugar mills present in Bihar started closing down. This had a negative impact on the economy of Bihar as well as on sugarcane farmers and local employment.
Now the Bihar government is once again preparing to revive these closed sugar mills. In such a situation, the question arises that how many sugar mills are closed in Bihar, how many will be reopened. What benefit will the youth and farmers of the state get from this step of the government?
How many sugar mills were there in Bihar earlier?
Before independence in Bihar, there were 33 sugar mills in the state. But by the 1980s it came down to 28. Then gradually about 18 of these chains also got closed. According to the portal of Sugar Industry Department of Bihar Government, now the number of sugar mills running in the state is only 10. At one time Bihar used to contribute about 40% of the total sugar production of the country, but now it has come down to about 4%.
The reasons behind the closure of these sugar mills were government neglect, non-adoption of new and modern technologies, rising production costs and financial crisis. This industry, which is called the backbone of the state’s economy, gradually started weakening. In sugarcane and sugar industry, states like Uttar Pradesh, Maharashtra and Karnataka have gone far ahead of Bihar. However, now the state government is going to revive 9 closed sugar mills.
Its first phase is going to start from the month of November. Three closed sugar mills will be restarted. These include Sakri of Madhubani, Raiyam of Darbhanga and Sasamusa Sugar Mill of Gopalganj. The target to start sugarcane crushing in these sugar mills has also been set for November 2026.
Preparations to restart which closed sugar mills?
- Chanpatia Sugar Mill (West Champaran)
- Bara Chakia Sugar Mill (East Champaran)
- Motihari Sugar Mill (East Champaran)
- Sasamusa Sugar Mill (Gopalganj)
- Marhaura Sugar Mill (Saran)
- Motipur Sugar Mill (Muzaffarpur)
- Samastipur Sugar Mill
- Sakri Sugar Mill(Darbhanga)
- Raiyam Sugar Mill (Darbhanga-Madhubani region)
What was the obstacle in restarting the sugar mills?
The biggest problem in restarting these sugar mills was the 1985 Act of the state government regarding this. Due to the 1985 Act, only the state government could operate the mills. This was because the land of the closed sugar mills was owned by the Bihar State Sugar Development Corporation.
Due to the Act of 1985, the process of transfer of land of these sugar mills was also stuck. Now the Sugarcane Industry Department has removed this hurdle by amending the law. In such a situation, the government is now inviting investors to operate the closed sugar mills. Its clear meaning is that now private sector companies can also operate sugar mills in Bihar.
Farmers of how many districts will benefit?
The sugarcane producing farmers of North and Central Bihar will get the maximum benefit from the opening of 9 sugar mills in Bihar. Districts like West Champaran, East Champaran, Gopalganj, Saran, Muzaffarpur, Samastipur, Darbhanga, Madhubani will benefit greatly. According to the 2011 census, the total population of these eight districts is approximately 3.37 crores. About 75 percent of the population of these districts is dependent on agriculture. The area under sugarcane cultivation among these farmers can increase and their income can also improve significantly as compared to before.
What will be the benefits to the farmers?
Farmers cultivating sugarcane in Bihar had to take their sugarcane crop to mills in far-flung districts or other states due to closed sugar mills. This increased their transportation costs. But now with the opening of sugar mills around them, local purchase of sugarcane will increase and transportation costs will reduce.
How much employment will be created?
The government has not yet released any official employment figures. But according to industry experts, a medium capacity sugar mill provides employment to 500 to 1000 people. At the same time, there is a possibility of providing indirect employment to 3,000 to 5,000 people. In such a situation, with the reopening of 9 sugar mills, about 9000 people can get direct employment and about 45000 people can get indirect employment. Apart from mill workers, there will be a possibility of increase in employment in transport, machinery, repair, packaging, agricultural services and small businesses.
Why is this scheme important for Bihar?
The importance of sugar mills has also increased due to the policy of the Central Government to promote ethanol blending in the country. Now it is also becoming a big center for ethanol, power generation (co-generation), bio-CNG and other sugar based industries. This is the reason why apart from this, it is also working on a plan to set up 25 new sugar based industrial units, which can prove to be an important reason for increasing the income of farmers.
If this ambitious plan of Bihar government succeeds, it will be of huge benefit to farmers, rural employment and the economy of the state. But the government will have to put it on the ground. The machines of many mills have been closed for years and will have to be modernized. Apart from this, ensuring adequate sugarcane production, attracting private investment and timely payment of sugarcane price to farmers will have to be done.
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