Raw Sugar Brought Under Sugar Control Order to Improve Transparency and Regulation

02-May-2025 03:17 PM

New Delhi. In a key regulatory move, the Central Government has amended the Sugar (Control) Order, 1966, to officially bring raw sugar under its ambit, marking a significant step toward improved oversight and transparency in the sugar sector. The decision was taken during a review held on May 1, 2025.

With this inclusion, raw sugar will now be treated as part of the total sugar stock in the country. This means that data on actual stock levels will be publicly accessible, reducing the scope for misreporting, especially in segments where raw sugar is sold under labels like Khandsari or organic sugar, which have seen rising popularity in recent years.

Khandsari Units Over 500 TPD Now Regulated

As part of the revised control order, Khandsari sugar units with a daily crushing capacity of more than 500 tonnes are now subject to government regulation. This includes mandatory compliance with the Fair and Remunerative Price (FRP) for sugarcane paid to farmers — a step expected to strengthen price enforcement and payment security for sugarcane growers.

According to official sources in the Union Food Ministry, 373 such units are currently operational across the country, with a combined daily crushing capacity of about 55,200 tonnes of sugarcane.

Wider Regulatory Scope: By-products and Diversion Tracking

In addition to raw sugar, the control order now also covers various sugarcane-derived by-products, such as:

  • Molasses

  • Sugarcane pulp

  • Press mud cake

  • Sugar syrup

  • Sugarcane juice

  • Ethanol produced from sugarcane

This broader inclusion will enable the government to monitor and regulate the diversion of sugarcane toward alternative products, especially ethanol, which impacts the net sugar availability in the domestic market.

Standardized Definitions for All Sugar Categories

To avoid ambiguity in classification, the updated order also incorporates standardized definitions for all sugar variants — including white sugar, refined sugar, cane sugar, jaggery, brown sugar, cube sugar, icing sugar, and normal sugar — as specified by the Food Safety and Standards Authority of India (FSSAI).

Impact and Outlook

Officials believe that the expanded Sugar Control Order will help improve the accuracy of sugar production data, strengthen policy planning, and reinforce supply chain accountability in the sector.

Latest News