Bihar Sugar Mills to Be Revived in Sakri and Raiyam

Bihar sugar mills which were the backbone of Bihar’s economy at a time were closed. This led to the surge of unemployment in Bihar. But now, the Bihar government is aiming at revitalization of the sugar industry in Bihar. This major initiative includes the pre-opening of to dysfunctional sugar mills i.e. Sakri Sugar Mill in Madhubani and Raiyam Sugar Mill in Darbhanga. These mills were once the symbol of economic prosperity of Bihar but unfortunately they have been closed for nearly three decades now.

Let’s breakdown this information to understand the government’s initiative of reviving these two Bihar sugar mills. You can use the Table of Contents to navigate as per your liking :

Background: Decline of Bihar Sugar Mills

The Sakri Sugar Mill located in Darbhanga was established in 1933 by Maharaja Kameshwar Singh. The Raiyam Sugar Mill dates back to British colonial era (before 1914). Both of these mills played a major role in supporting the local agriculture and employment. They were among the most productive units in the region. Interestingly, the Raiyam unit had a 14-kilometer-long trolley line just for transporting sugarcane to Mokaddampur.

But due to financial mis-management and lack of mordenisation, these Sugar Mills gradually declined. The Raiyam Sugar Mill shut down in 1994 while the Sakri Sugar Mill got closed in 1997. This disrupted the the entire supply chain of farming, processing and trade of sugarcane in Bihar.

Revival Initiative

The Department of Sugarcane Industry in Bihar has decided to reassess the assets of both Sakri and Raiyam mills. SBI Capital Markets Limited (SBI Caps), Kolkata husband appointed for the revaluation of the properties. This marks the first step in the potential reopening of the mills.

Anil Kumar Jha, the Cane commissioner of Bihar initiated the revaluation and survey process for the same. This will include identification of the present condition of land, infrastructure and equipment. After this, new investments and development will be planned accordingly.

Apart from restarting the old Bihar sugar mills, the Bihar government will also set up new Sugar Mills and ethanol plants in the same premises. This is in accordance with the Union government’s orders of blending ethanol in fuels to promote green energy and reduce oil imports.

The revival of the closed sugar mills in Bihar can be a game changing move for Bihar. This will improve the opportunities for farmers, reduce post harvest losses and generate employment. Along with this, ethanol production will be contributing to the National green energy goals.

Prior to this, in 2006, SBI Caps conducted similar evaluation for 15 sugar mills in Bihar. Out of the 15, the land for 8 sugar mills has already been transferred to Bihar Industrial Area Development Authority (BIADA). The remaining 7 were handed over to private players such as HPCL Biofuels, Indian Potash Limited, and Pistine Magadh Infrastructure.

The Sakri and Raiyam Sugar Mills leased to Tirhut Industries Limited which is a private entity but they failed to meet the contract. So in 2021, the state government reclaimed controls over those sugar mills. Therefore, this time the Bihar government is more cautious regarding these sugar mills.

Scale and Potential of the Bihar Sugar Mills

The Sakri sugar mill is spread across and area of around 47 acres. The Raiyam Sugar Mills on the other hand, has approximately 68 acres of area under it. These sugar mills are located in strategic industrial land which have access to sugarcane production. This major step can unlock the hidden potential of North Bihar which is often plagued with high unemployment and migration.

Moreover, morden plant specially the Ethanol plants will also help in integrating allied industries like bio-fertilizer, co-generation, and packaging. These will function as multi-product agro-industrial hubs.

Farmers’ Perspective of Revival of Bihar Sugar Mills

Prior to this, sugarcane farmers from Bihar were forced to sell their produce to distant mills at throwaway prices due to lack of local options. But when they will have access to the nearest sugar mills, they will be benefited with better prices without the hassle of transportation. This will promote the cultivation of sugarcane in the state. The farmers will get their payments on time reducing chances of exploitation.

Apart from the benefits to the farmers, local businesses will also benefit.

Challenges For These Bihar Sugar Mills

The revival of these Bihar sugar mills will not be a piece of cake, government must ensure that the procedure related to the Sugar Mills should be done fairly and transparently without corruption. Modern technology should also be adopted in order to gain full advantage of new Bihar sugar mills. The investors should be selected fairly and the project must be completed on time. Officials must ensure that the contract is enforced properly without repeating past failures.

The concept of Public-private partnerships (PPPs) will bring in expertise and trust from both the sides. However, government must make sure that the public and farmers’ interest is maintained.

Conclusion

The revival of Sakri and Raiyan Sugar mill shows the Bihar government’s commitment towards industrial rejuvenation and overall development of the state including the rural areas. Government is primarily focusing on such sustainable industries that will provide employment opportunities to the local people. Sugar mill and ethanol plant both will help in providing a major boost to the economy. Ethanol plants are gaining prominence as they are required to meet the energy requirements of the whole nation.

We can just hope for the timely and effective revival of these Bihar sugar mills. If executed properly, Bihar will regain its decades-long lost industrial side and grow exponentially. This will truly be a new chapter for Bihar’s economic development.

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