More Stories

Informist, Friday, May 2, 2025

 

NEW DELHI – The Indian Sugar and Bio-Energy Manufacturers Association Friday welcomed the newly issued Sugar (Control) Order, 2025, saying it will create a more transparent, efficient, and accountable sugar ecosystem. The Ministry of Consumer Affairs on Thursday issued the Sugar (Control) Order, 2025, replacing the nearly 6-decade-old Sugar (Control) Order, 1966, and Sugar Price (Control) Order, 2018. 

 

"For the first time, khandsari sugar factories with a crushing capacity over 500 tonnes per day are brought under regulatory oversight," ISMA said. While sugar mills are mandated to pay fair prices for sugarcane and penalised in case of cane payment dues, khandsari units were not under the purview of the fair and remunerative price for sugarcane fixed by the Centre. 

 

Inclusion of khandsari units under the regulatory ambit "ensures mandatory payment of the fair and remunerative price to farmers and enhances the accuracy of sugar production data," ISMA said. Of 373 khandsari units in India, 66 exceed the 500 tonnes-per-day threshold, it said. Khandsari factory does not have high crushing capacity like sugar mills and produces sugar by the open pan process with minimal mechanical aid. 

 

The sugar industry body also welcomed the decision to regulate raw sugar. "Raw sugar is now officially regulated and included in national sugar stock calculations," ISMA said. This move aligns with international standards and eliminates misleading labels like "khandsari" or "organic" for raw sugar, it said. 

 

Also, definitions for various sugar types in the new order align with those set by the Food Safety and Standards Authority of India, ensuring consistency across the sector, ISMA said. The sugar varieties are--plantation white sugar, refined sugar, khandsari sugar, jaggery, bura, cube sugar, and icing sugar. 

 

ISMA said the mandatory digital integration of mills minimises redundancies and data leakages. The new order mandates digital integration of mills between the government portal and sugar mills' data processing systems like ERP (Enterprise Resource Planning)or SAP (Systems, Applications, and Products), enabling real-time data sharing. "Over 450 sugar mills are already integrated, and GSTN (Goods and Services Tax Network) data on sugar sales is now linked for enhanced oversight and efficiency," it added. 

 

ISMA said consolidating provisions from the Sugar Price (Control) Order, 2018, into the new order streamlines regulations and offers greater clarity to stakeholders.  End

 

Reported by Afra Abubacker

Edited by Saji George Titus

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.