The sugarcane department allocated Rs 12.40 crore for the jaggery industry.
The sugarcane department allocated Rs 12.40 crore for the jaggery industry.
Patna, September 25, 2024: The Sugarcane department of the Bihar government has allocated Rs 12.40 crore for the development of jaggery Industry in the state on Wednesday.
Krishnandan Paswan, the sugarcane minister of the Bihar government has confirmed the development. He said that the funding will be distributed to 81 jaggery units.
“The state government is aimed at encouraging industrialists in Bihar to set up Jiggery production units, thereby boosting the local agro-industry. The fund will be provided in the form of loans with the application process available online through the portal of the state’s sugarcane ministry,” Paswan said.
“We have urged interested entrepreneurs to apply through the portal to take advantage of the government support. It is a significant step towards strengthening the state’s traditional jaggery industry and promoting rural economic development,” he said.
The sugarcane department has introduced a categorized loan scheme to support industrialists looking to establish jaggery units.
The loan structure is based on the production capacity of the units, with financial aid designed to cover up to 50% of the total investment.
The sugarcane minister pointed out that for units with a capacity of 5 to 20 tons of sugarcane per day, a maximum loan of Rs 6 lakh or 50% of the total cost, which is lower, will be sanctioned.
Units with a capacity of 21 to 40 tons per day, will be eligible for a maximum loan of Rs 15 lakh or 50% of the total cost of the unit.
A loan of up to Rs 45 lakh will be sanctioned for the units with a capacity of 41 to 60 tons per day.
Larger units can receive up to Rs 1 crore as a loan if they have a capacity exceeding 60 tons per day.
In addition to support for the jaggery industry, Bihar is making strides in sugar production.
According to Krishnandan Paswan, Bihar is currently the fifth-largest producer of sugar in India and is on track to become the third-largest.
Sugarcane is a significant commercial crop in the state supported by the fourth agricultural roadmap.
Sugar production in Bihar has increased from 4.51 lakh metric tons in 2006-07 to 6.87 lakh metric tons in 2023-24, with the previous year’s output at 6.73 lakh metric tons.
Additionally, Bihar distilleries produced 86,298.72 kilolitres of ethanol in the last year, underscoring the importance of sugarcane in both sugar and ethanol production.
This initiative aims to boost the state’s agricultural economy and create new opportunities for industrialists.
Also Read: The Bihar Chamber of Commerce and Industries asked the Nitish Kumar government to review the non-residential taxes
EOM.