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Informist, Wednesday, Apr. 22, 2026

 

MUMBAI – The government released a draft of the Sugarcane (Control) order 2026 on Monday, which seeks to overhaul the 1966 version of the regulations. The proposal, issued by the Ministry of Consumer Affairs, Food, and Public Distribution, includes recognition of ethanol as a core output of sugar mills, brings khandsari under the fair and remunerative price regime, and tightens rules around the establishment of new sugar factories.

 

"...due to the technological advancements in the sugar sector, there are multiple changes in the sugarcane sector which necessitates the revamping of existing the Sugarcane (Control) Order 1966," the ministry said in the draft.

 

Under the new order, factories producing ethanol directly from sugarcane juice, syrup, or molasses will see every 600 litres of ethanol they produce counted as equivalent to 1 tonne of sugar. The new draft states, "When a sugar factory produces ethanol directly from sugarcane juice or sugar or sugar syrup or B-Heavy molasses, the conversion rate in case of such sugar factory shall be determined by considering every 600 liters of ethanol so produced as equivalent to one tonne of production of sugar." 

 

The 1966 version read, "When a sugar factory produces ethanol directly from sugarcane juice or B-Heavy molasses, the recovery rate in case of such sugar factory shall be determined by considering every 600 litres of ethanol so produced as equivalent to one tonne of production of sugar."

 

The draft also brings khandsari under the fair and remunerative price regime. The new proposal states, "The central government or a state government, with the concurrence of the central government, may, by notification in the official gazette, from time to time, fix the fair and remunerative price or the price of sugarcane to be paid by producers of khandsari sugar or their agents for the sugarcane purchased by them". The old order read: "The central government or a state government, with the concurrence of the central Government, may, by notification in the official Gazette, from time to time, fix the minimum price or the price of sugarcane to be paid by producers of khandsari sugar or their agents for the sugarcane purchased by them."

 

Khandsari is a traditional, unrefined, and raw white sugar made from sugarcane juice without chemical bleaching or sulphur.

 

The new proposal has increased the distance between two sugar factories to 25 kilometres from 15 km stated in the old rule book. "...no new sugar factory shall be set up within the radius of 25 km of any existing sugar factory or another new sugar factory in a state or two or more states," the proposal said. The 2026 order also proposes that state government take a call if any existing sugar factories want to increase their production capacity.  End 

 

Reported by Shreya Shetty

Edited by Ashish Shirke

 

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