Govt slashes sugar cane commission

Patna: The Bihar govt has taken a major 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 said the decision was taken keeping in mind both the financial health of sugar mills and the interests of farmers. He confirmed the proposal has received cabinet approval and will benefit mill operators across the state.The move comes as part of a broader push by the govt to revive the sugar sector, including reopening closed mills and setting up 25 new sugar factories in Bihar.

In recent times, mill owners had been facing financial distress and had sought an economic relief package from the govt.In response, the department reduced the JDC commission on sugar cane procured during the 2025-26 crushing season from 1.80% of the cane price to 0.2%. Earlier, sugar mills paid 1.80% of the per quintal cane price as commission to the JDC, which was utilised for the development of cane-growing areas, supply of quality seeds and addressing farmers’ issues.

Officials believe the sharp reduction in commission will help strengthen the financial position of sugar mills while ensuring farmers’ interests remain protected, thereby supporting the long-term growth of Bihar’s sugar cane industry.