The true march with credible sentiments has arrived to rewrite the Bihar story. The sugarcane industry is just one, but it is an important confidence-builder. Many such ideas need to fructify. — Alok Singh
Bharat, as the world’s largest sugarcane producer and consumer, is strategically positioned to expand as a major sugar exporter. Beyond food, sugarcane’s value in ethanol production delivers benefits for both energy security and foreign revenue, making it a multi-dimensional asset for national growth. Since sugar production is largely derived from sugarcane—four-fifths of total output—the sector’s expansion is central to both economic and energy goals.
Sugarcane is a water-intensive crop. Currently, Uttar Pradesh and Maharashtra lead national sugarcane production, while Bihar’s share lags behind those of Karnataka and Tamil Nadu. Growing such water-intensive crops in water-stressed areas negatively impacts the local ecosystem. Importantly, agricultural subsidies can influence farmers’ crop choices. When short-term decisions driven by poorly designed subsidies are made, long-term repercussions—such as depleted groundwater and poor soil health—can follow. Since agriculture is a state subject, not a central or concurrent one, each state government frames its own subsidy policies to support its farmers’ interests.
Sugarcane is a cash crop, and the lucrative financial benefits have spurred its cultivation even in areas where sufficient irrigation is difficult. The cause behind this can be debated—perhaps the decision-makers lack understanding, or perhaps they simply see new opportunities. In this context, it’s fair to consider that one’s failure can mean another’s success.
However, agriculture should never be a zero-sum game. It should not be that one benefits while another loses. The sector is a holy business, the universe’s first, supporting life itself, while other businesses mainly support livelihood.
The misalignment between crop choice and the strengths of the agricultural climatic zone was due to a faulty policy design. Sugarcane cultivation is a double-edged sword. On the one hand, it creates income for farmers, jobs for youths, opportunities for cooperatives to expand, and leads to rural growth; on the other hand, it creates water scarcity in unfavourable agricultural regions, stubble burning causes environmental damage, and price volatility feeds farmers’ debt. Every sugar-producing state in our country relies on one or more strengths.
For example, Uttar Pradesh has the largest area suitable for sugarcane cultivation. Maharashtra leverages a strong cooperative culture to benefit its sugar mills, while Karnataka and Tamil Nadu focus on high productivity.
Sugarcane is grown year-round, i.e., it has a cycle time of 12 months, from sowing to harvesting. After the initial planting, the crop can be cultivated for multiple years; this process is called ratooning. Ratooning is growing a new crop from the roots of the previous crop, eliminating the need for replanting. Although land used for sugarcane cannot be used for other crops, during the early growth phases, substitute fodders for cattle can be grown.
Another important factor is water availability. Larger perennial rivers in the north, compared to the south, give northern farmers an advantage for growing crops like sugarcane, which require water year-round. These rivers provide a continuous supply, enabling perennial crop harvesting over several years.
Meanwhile, the southern states possess their own unique advantages, such as Maharashtra’s strong cooperative culture. As sugarcane cultivation gradually shifted from north to south, agricultural subsidies—including those for electricity and infrastructure like roads—became more favorable in the south. Today, however, expanding transportation networks—expressways, highways, railways, waterways, and airways—are bridging these differences. While agriculture remains a state subject, the cooperative sector is also evolving. The new law on multi-state cooperatives is designed to permit their operation without conflicts of interest. Bharat currently counts almost eight lakh cooperative societies.
Reviving Bihar’s sugar mill industry offers a pivotal opportunity to significantly increase sugarcane production, improve farmers’ incomes, strengthen the dairy sector, and positively impact both direct and indirect stakeholders. Bihar’s favorable geography—demonstrated by the Ganga’s abundant flow between Chausa in Buxar and Manihari in Katihar —makes it uniquely capable of supporting large-scale, sustainable sugarcane cultivation, positioning the state to reclaim its historical leadership in the sector.
The first sugar mill in Bihar was established in 1904, and within three decades, it grew to 33 sugar factories. These operational sugar mills accounted for almost 40% of the country’s sugar production at that time. Today, Bihar’s share of sugar production is a mere 4% of the country’s overall production.
Samastipur, Gopalganj, and Champaran districts of Bihar were leaders in sugar production and retain that capability today. The tributaries of the river Ganga pass through these districts, and Samastipur- the epicenter of sugar cultivation itself is on the bank of the river Ganga and the Budhi Gandak. The original Pusa Agricultural University is in Samastipur district (later the Agriculture University at Delhi was named Pusa Agriculture), and it also houses the sugarcane research farm. The Bihar government’s commitment to operate 34 sugar mills is just one addition to its peak data. It’s not a BHAG, i.e., it’s not a big, hairy, audacious goal. It’s a commitment to retain the realistic goal that had been attained a century ago.
The nationalization of sugar mills in the 1970s is also blamed for the downfall of sugar factories in Bihar. The failure of the Bihar State Sugar Corporation cost the state its glory in sugar production.
Land acquisition for big industries is a challenge, given that the majority of land in Bihar is multi-crop irrigated and cultivable. Agro-based industries that require hundreds of acres are a feasible scope for industrialisation, rather than thousands of acres for a manufacturing plant like steel or automobiles. Working on strengths whether that be a crop or a consumer durables or geographical assets is the way ahead.
North Bihar’s plains are distinctively positioned for sustainable sugarcane cultivation. Abundant water resources and resilient local varieties allow production without compromising the ecosystem. Sugarcane farming supports rural employment, strengthens the dairy chain, and reduces flood risks, aligning with new cooperative policies to anchor broad, sustainable regional growth.
The true march with credible sentiments has arrived to rewrite the Bihar story. The sugarcane industry is just one, but it is an important confidence-builder. Many such ideas need to fructify.
(Alok Singh has a doctorate in management from the Indian Institute of Management Indore and is a promoter of Transition Research Consultancy for Policy and Management.
