Draft Amendments to Sugarcane Control Order Released

22-Apr-2026 06:01 PM

New Delhi: The Central Government has released a draft proposing certain amendments to the Sugarcane (Control) Order, 1966. This very order governs the control and operation of the entire sugarcane and sugar sector.

The new draft proposes maintaining a minimum distance of 25 kilometers between any two sugar mills and ensuring that Khandsari units pay sugarcane growers the Fair and Remunerative Price (FRP) as determined by the Centre. Additionally, the draft places emphasis on regulating Khandsari units. Under these provisions, obtaining a license will be made mandatory for these units, bringing them under the purview of regular scrutiny and inspection.

It is noteworthy that Khandsari is a traditional, unrefined raw sugar produced from sugarcane. The draft states that concerned stakeholders are required to submit their opinions and comments to the government by May 20.

According to rough estimates, the country produces an average of 430–450 million tonnes of sugarcane annually, approximately 31 percent of which is utilized by Gur (jaggery) and Khandsari units. Given the substantial volume involved, the government seeks to streamline its utilization and also intends to keep a close watch on Khandsari units.

As far as the stipulation regarding the distance between two sugar mills is concerned, this mandatory rule is already in force in several states, including Maharashtra.

The draft amendments also propose that if a sugar mill fails to make payment for the sugarcane procured within 14 days of its receipt, it shall be liable to pay interest to the sugarcane farmers at a rate of 14 percent.