Sugarcane Control Order 2026 Draft Released
The Sugarcane Control Order 2026 has been proposed by the Union government to replace the decades-old Sugarcane (Control) Order, 1966. The Ministry of Consumer Affairs, Food and Public Distribution released the draft on April 20, inviting feedback from stakeholders until May 20, 2026. This move is being seen as a major reform in India’s sugar sector.
Sugarcane Control Order 2026 Aims to Modernise Sector
The Sugarcane Control Order 2026 is driven by technological advancements and evolving industry practices. The government stated that significant changes in sugar production and by-products have made it necessary to update the regulatory framework that has been in place for nearly six decades.
Sugarcane Control Order 2026 Recognises Ethanol Production
A key highlight of the Sugarcane Control Order 2026 is the formal inclusion of ethanol as a primary output. Under the proposal, 600 litres of ethanol produced from sugarcane juice, syrup, or molasses will be treated as equivalent to one tonne of sugar. This step aligns with India’s growing focus on biofuel and ethanol blending programs.
Sugarcane Control Order 2026 Retains FRP System
The Sugarcane Control Order 2026 retains the Fair and Remunerative Price (FRP) mechanism, ensuring minimum payment to farmers. Sugar mills must pay farmers within 14 days of cane delivery. In case of delay, a penalty of 15% annual interest will be imposed, strengthening farmer protection.
Sugarcane Control Order 2026 Tightens Factory Rules
Under the Sugarcane Control Order 2026, new sugar mills cannot be established within a 25-kilometre radius of existing factories. Additionally, companies must submit a ₹2 crore bank guarantee and begin production within five years. These measures aim to regulate expansion and prevent unhealthy competition.
Sugarcane Control Order 2026 Restricts IEM Transfers
The Sugarcane Control Order 2026 also prohibits the transfer of Industrial Entrepreneur Memorandums (IEMs) before commercial production begins. This step is intended to curb speculative practices in the sugar industry, with exceptions only for legal or insolvency cases.
Sugarcane Control Order 2026 Stakeholder Consultation
The draft Sugarcane Control Order 2026 has been shared with multiple stakeholders, including ministries, sugar-producing states, research institutes, and industry bodies like ISMA and NFCSF. Feedback will play a key role before the final notification is issued.
Sugarcane Control Order 2026 to Replace 1966 Law
Once implemented, the Sugarcane Control Order 2026 will completely replace the 1966 order. However, existing licenses and approvals will remain valid until new provisions come into effect after official gazette notification.
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Conclusion
The Sugarcane Control Order 2026 represents a major shift in India’s sugar policy, especially with the integration of ethanol and stricter compliance rules. While it aims to modernise the sector and support biofuel goals, its real impact on farmers and industry stakeholders will become clear after implementation.
