Bihar approves Nawada sugar mill and Kosi dairy expansion to strengthen food supply

Bihar Cabinet has cleared a sugar mill in Warisaliganj, Nawada, with expected investment of over Rs 500 crore, alongside eight dairy projects in the Kosi region. The state also approved 100% interest subsidies for livestock-farmer loans and plans 500 new milk cooperatives.

— Source publishedWed, 23 Sept, 2026, 20:20 IST·First seen Wed, 23 Sept, 2026, 20:51 IST·Source Business Today · Latest

What happened

Government of Bihar · Bihar Cabinet approved a new Nawada sugar mill and dairy-expansion projects in Kosi, alongside full loan-interest subsidies for livestock

Key facts

  • More than Rs 500 crore expected investment for a new sugar mill in Warisaliganj, Nawada
  • 100% interest subsidy on bank loans for livestock farmers
  • More than Rs 1,600 crore approved for Mukhyamantri Go-Dhan Vikas Rin Yojana
  • 8 dairy-development projects approved in Kosi region
  • 500 new milk cooperative societies planned

What changed

Bihar Cabinet approved a new Nawada sugar mill and dairy-expansion projects in Kosi, alongside full loan-interest subsidies for livestock farmers. The measures could strengthen regional sugar and milk supply chains serving grocery and food retail.

Why this matters

Bihar’s new sugar mill, Kosi dairy projects and milk cooperatives could broaden regional sourcing options and improve supply reliability for grocery and food retailers.

What to watch

  • Tender awards, land transfer, financing closure and construction start dates for the Warisaliganj sugar mill.
  • Announced crushing capacity, expected commissioning year, cane command area and farmer cane-price commitments.
  • Names, locations and capacities of the eight Kosi dairy projects, including chilling and processing infrastructure.
  • Number of new milk cooperatives actually registered, active members, daily milk collection and loan disbursement volumes.
  • Changes in Bihar farmgate milk prices, retail dairy prices, sugar wholesale prices and milk procurement competition.