A seven-year-old policy is being given sweet touches to revive the loss-making sugar mills in the state.

However, the mill-owners can expect results only later this year, as the changes are at present being made in the sugarcane incentive policy, drafted in 2006 along with the industrial incentive policy.

Sugarcane industries minister Awadhesh Prasad Kushwaha said: “One important change in the policy, which the department is seriously pursuing, is to introduce entry tax for sugar, which comes to Bihar from other states.”

This was being sought by local sugar mill representatives who feel that the absence of any entry tax on sugar was costing their business dearly.

“In October last year, the chief minister held Udyami Panchayat, which focused on the local sugar industry. In the meeting, stress was laid on making changes to the sugarcane incentive policy. In 2011, the government made fresh amendments to the industrial policy but the policy on sugarcane remained the same. We are working on an improved policy, which aims at further strengthening the 2006 policy,” he said.

He added that the next Udyami Panchayat on the sugar industry would take place either in October or November.

“According to the chief minister’s directives, the present policy needs to be amended and the demands of those involved in the business should also be taken into consideration. One of their demands of levying entry tax on sugar coming to Bihar from other states is being given a serious thought. Officials from the commercial taxes department have been roped in to figure out the logistics and calculations,” Kushwaha said.

“In Bihar, there is no entry tax for sugar unlike in other states. This is costing the local sugar industry a lot. Sugar from places like Karnataka, Maharashtra and even Brazil come to the state without a tax burden. Big sugar manufacturing houses have set up their offices in the state and they do not have to pay an entry tax as there is no provision for the same unlike on other products. The local sugar industries are not very huge ones compared to their counterparts in other parts of the country or abroad. For example, in Punjab the entry tax for sugar rests at 5 per cent and in Uttar Pradesh, the same is 2 per cent. Unless the state introduces an entry tax for sugar, the industry will not flourish,” Deepak Yadav, the CEO and managing director of Bagaha-based Tirupati Sugars Limited, said.

Department sources added that the prices of molasses would also be made flexible in the amended policy.

“The price of molasses has been the same for 10 years now. The government is trying to make things flexible for the industrialists. At present, 12 sugar mills are operational and the government is trying to revive more,” an official of the department said.

At present, around 80,000 sacks of sugar weighing one quintal each comes from outside.