Key Takeaways:
- Bihar sugar mills revival will see two mills, Sakri and Raiyam, prepared for transfer to the Cooperative department pending cabinet approval.
- Primary Agriculture Cooperative Society has procured 9.53 lakh metric tonnes of paddy and paid Rs 1,755 crore in MSP to farmers, with efforts to expand procurement capacity.
- Cooperative department is forming committees, preparing DPRs and will run mill-wise plans once transfers are complete.
- Membership and awareness drive for PACS begins on 2 January to strengthen farmer services and local procurement networks.
Bihar advances sugar mills revival to boost rural economy
The Bihar government has moved to revive dormant sugar mills and strengthen farmer support systems as part of its broader Saat Nischay programme. Cooperative Minister Pramod Kumar said on Tuesday that two mills will be operated by the Cooperative department once the cabinet approves the proposal. Preparatory work is already under way.
Bihar sugar mills revival
Officials named the two units likely to be transferred as the Sakri mill in Madhubani district and the Raiyam mill in Darbhanga district. The Cooperative department is setting up the institutional framework required to manage the assets, including the constitution of cooperative committees and the preparation of detailed project reports for each mill.
“A high-level committee chaired by the Chief Secretary has directed the Cooperative department to work on operating two sugar mills,” Cooperative Secretary Dharmendra Singh said. He added that the department will prepare mill-wise plans only after the formal transfer of the units is completed.
Departmental officials present at the press briefing included Additional Secretary Abhay Kumar Singh and other senior staff, who confirmed that the department has started technical and administrative preparations ahead of cabinet clearance.
Procurement drive and farmer support
Alongside the mills plan, the Cooperative department emphasised steps to improve procurement and timely payment to farmers. Primary Agriculture Cooperative Society (PACS) has procured 9.53 lakh metric tonnes of paddy from 1.32 lakh farmers in the current Kharif Marketing Season 2025-26. The government has disbursed Rs 1,755 crore as Minimum Support Price payments.
The state is working against a target of 36.85 lakh metric tonnes of paddy and has written to the central government seeking permission to increase procurement limits to 45 lakh metric tonnes. To ensure transparency, district magistrates have been instructed to compile lists of farmers interested in selling to PACS and to designate dates and additional procurement centres where needed.
To address grievances, the department is operating an IVRS call centre on the toll-free number 1800 1800 110. So far 584 complaints have been logged, most relating to paddy procurement. Mr Kumar said payments are being processed within 48 hours of procurement.
Building local capacity through PACS
The Cooperative department will launch a membership-cum-awareness drive at panchayat level from 2 January. The campaign aims to familiarise farmers with Cooperative schemes and to expand PACS membership. Bihar reports 1.38 crore PACS members across its panchayats, and the government intends to develop PACS as primary service centres delivering up to 25 services.
By restoring sugar production capacity and deepening cooperative procurement, the state government seeks to stimulate rural employment, support cane and paddy growers, and strengthen local supply chains. Officials say more detailed plans and timelines will be shared after cabinet approval and the completion of required project reports.
For now, the focus remains on formalising committees, finishing project documentation and expanding procurement operations to reach more farmers across the state.
