Govt issues draft Sugarcane (Control) Order 2026, seeks comments by May 20
This story was originally published at 15:28 IST on 22 April 2026
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NEW DELHI – The Centre on Tuesday issued a draft Sugarcane (Control) Order 2026, seeking to replace the six-decade-old Sugarcane Control Order, 1966, and sought public feedback for the same by May 20. "Due to the technological advancements in the sugar sector, there are multiple changes in the sugarcane sector which necessitate the revamping of the existing Sugarcane (Control) Order, 1966," the Ministry of Consumer Affairs, Food and Public Distribution, said.
Under the draft order, the government plans to restrict the establishment of new plants within a 25-kilometre radius of any existing factory. To expand crushing capacities, mills will require the government's approval after it assesses sugarcane availability, cane cultivable area, average yield in the region, operational days, and impact on neighbouring mills.
The draft order expands the scope of regulations to cover ethanol production from sugarcane juice and molasses, while fixing the fair and remunerative prices of sugarcane based on factors such as production costs, sugar recovery, and by-product realisations. It also mandates timely payment to farmers within 14 days, with interest penalties for delays.
The draft also recognises ethanol as a core output of sugar mills. When a sugar mill produces ethanol from sugarcane juice or B-heavy molasses, the conversion rate shall be determined by considering every 600 litres of ethanol produced as equivalent to one tonne of sugar, the draft said. It also has detailed provisions governing the industrial entrepreneur memorandums, including timelines, bank guarantees, and conditions for project implementation. End
Reported by Afra Abubacker
Edited by Tanima Banerjee
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