Bihar Government Slashes Sugar Cane Commission by 90%
The Bihar government has taken a significant step to boost the sugar cane sector and provide relief to financially stressed sugar mills by slashing the commission of the Regional Development Council (JDC) by 90%. Additional Chief Secretary of the Sugarcane Industry Department, K Senthil Kumar, confirmed that the proposal has received cabinet approval and will benefit mill operators across the state.
Revised Commission Structure
Under the new policy, the JDC commission on sugar cane procured during the 2025-26 crushing season has been reduced from 1.80% of the cane price to just 0.2%. Previously, sugar mills paid 1.80% of the per quintal cane price as commission to the JDC. This amount was utilized for the development of cane-growing areas, supply of quality seeds, and addressing farmers’ issues. Officials believe that the sharp reduction in commission will help strengthen the financial position of sugar mills while ensuring farmers’ interests remain protected.
Broader Revival Efforts
The move is part of a broader push by the state government to revive the sugar sector. In recent times, mill owners faced financial distress and sought an economic relief package from the government. In response, the department has not only reduced the commission but also initiated plans to reopen closed mills and set up 25 new sugar factories in Bihar. These measures aim to support the long-term growth of Bihar’s sugar cane industry.
Impact on Stakeholders
K Senthil Kumar emphasized that the decision was taken keeping in mind both the financial health of sugar mills and the interests of farmers. The reduction in commission is expected to provide immediate financial relief to mill operators, enabling them to operate more efficiently and sustain their businesses. At the same time, the government assures that farmers’ welfare will not be compromised, as alternative mechanisms will be explored to address their concerns.
The Bihar government’s proactive approach reflects its commitment to revitalizing the sugar sector, which is crucial for the state’s agrarian economy. With these reforms, the government aims to create a more sustainable and profitable environment for all stakeholders involved in the sugar cane value chain.
