Bihar government to revive old sugar mills

The Bihar government's initiative to revive old sugar mills, coupled with a statewide membership-cum-awareness drive by the Cooperative Minister, marks a significant step towards rejuvenating the state's rural economy and strengthening its cooperative framework. This move is not merely about reactivating dormant industrial units but about fostering self-reliance, creating employment, and ensuring better livelihoods for sugarcane farmers.

**Background Context and Historical Significance:**

Bihar, historically known as the 'Sugar Bowl of India,' once boasted a thriving sugar industry with numerous mills across the state. In the early 20th century, sugar production was a cornerstone of its agro-economy. However, over the decades, a combination of factors led to the decline and closure of many of these mills, particularly those in the cooperative sector. Reasons included outdated technology, mismanagement, lack of modernization, inadequate cane supply due to shifting crop patterns, accumulating debts, and intense competition from private mills and other sugar-producing states like Maharashtra and Uttar Pradesh. The closure of these mills devastated local economies, leading to job losses, financial distress for sugarcane farmers who lost a reliable market, and increased migration from rural areas. The revival effort, therefore, addresses a long-standing economic and social challenge for the state.

**What Happened (The Current Initiative):**

The Bihar government's plan to revive these old sugar mills is a strategic move to restore economic vitality to affected regions. Central to this strategy is the Cooperative Minister's upcoming membership-cum-awareness drive, slated to begin from January 2 at the panchayat level. This grassroots initiative aims to achieve two primary objectives: first, to educate the rural populace about various cooperative schemes available to them, thereby promoting their participation and understanding of the cooperative model; and second, to significantly boost membership in Primary Agricultural Credit Societies (PACS). PACS are vital financial institutions at the village level, providing short-term and medium-term credit to farmers, facilitating input supply, and often acting as procurement agents. Their strengthening is crucial for the successful operation of cooperative sugar mills, as they can ensure a stable supply of cane and provide necessary financial support to farmers.

**Key Stakeholders Involved:**

The primary stakeholders in this initiative include the **Bihar Government**, particularly the Cooperative Department and the Sugar Department, which are spearheading the policy and implementation. **Sugarcane farmers** are at the heart of this drive, as they are both suppliers to the mills and potential beneficiaries of cooperative schemes and credit from PACS. Their active participation is critical for the sustained supply of raw material. **Primary Agricultural Credit Societies (PACS)** are crucial institutional stakeholders, acting as the backbone of the rural cooperative credit structure. **Local communities and Panchayats** are also key, as the awareness drive targets them directly, aiming to foster local ownership and participation. Lastly, **cooperative federations and bodies** at the state level play a supervisory and facilitative role.

**Significance for India:**

This initiative holds significant implications for India beyond Bihar. Economically, a successful revival could provide a model for other states grappling with dormant industries, demonstrating how the cooperative model can be leveraged for rural industrialization and employment generation. It directly supports the national goal of doubling farmers' income by providing a secure market for sugarcane and enhancing their access to credit. Socially, it can curb distress migration, reduce rural poverty, and empower local communities through democratic control inherent in cooperative structures. Politically, it showcases the government's commitment to rural development and fulfilling electoral promises, while strengthening the cooperative movement, which is a key pillar of India's rural economy. The success of such ventures can also inspire greater investment and modernization in the agro-processing sector.

**Constitutional and Policy References:**

The cooperative movement in India gained significant constitutional backing with the **97th Constitutional Amendment Act, 2011**. This landmark amendment conferred constitutional status and protection to cooperative societies. It inserted **Article 19(1)(c)**, making the right to form cooperative societies a fundamental right. It also introduced **Article 43B** under the Directive Principles of State Policy (DPSP), mandating the state to endeavor to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies. Furthermore, it added **Part IXB** to the Constitution, specifically dealing with cooperative societies (Articles 243ZH to 243ZT), laying down provisions for their incorporation, election of board members, audit, and dissolution. This constitutional framework provides a strong legal basis for initiatives like Bihar's. State-specific legislation, such as the **Bihar Cooperative Societies Act**, also governs the functioning of cooperatives within the state. The drive for PACS membership aligns with the broader **National Policy on Cooperatives**, which aims to promote and strengthen the cooperative sector across various domains.

**Future Implications:**

If successful, this initiative could usher in a new era of economic prosperity for Bihar's sugarcane belt. It could lead to increased agricultural productivity, diversified rural incomes, and the creation of ancillary industries. The strengthening of PACS through increased membership will enhance financial inclusion and credit availability for farmers, fostering a more robust rural financial ecosystem. However, challenges remain, including securing adequate funding for modernization, ensuring efficient management, tackling market fluctuations, and maintaining consistent cane supply. The long-term sustainability will depend on effective governance, technological upgrades, and sustained farmer participation, potentially making Bihar a case study for cooperative-led rural industrial revival in India.