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The Central government has decided to notify draft amendments to the Sugar Control Order of 1966, said its Food Secretary on Thursday, seeking to streamline regulations and prod gur and khandsari units to pay farmers fairly.
The amendments will enable the government to bring around 66 large gur and khandsari (unrefined raw sugar) units within the Control Order. The units have a sugarcane crushing capacity of at least 500 TCD (tonnes crushed per day) and are largely located in Uttar Pradesh and Maharashtra.
The step will ensure payment of fair and remunerative prices to cane farmers and help in accurate estimation of sugar production. Around 31 per cent of India' annual sugarcane production of 435 million tonnes is consumed by the gur, khandsari and jaggery units.
"This revision aims to simplify and streamline the regulatory framework governing the sugar sector in line with current industry dynamics and technological advancements," said Food Secretary Sanjeev Chopra on Thursday.
It will ensure cane farmers receive fair and remunerative prices from khandsari factories on the basis of improved accuracy in sugar production estimates, he said.
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According to Ashwani Srivastava, Joint Secretary in the Food Ministry, India has 373 khandsari units with a total capacity of about 95,000 TCD.
"Out of these, 66 units have a capacity of more than 500 TCD. They will now be regulated under the order," Srivastava said, adding that these units will need to register on the digital National Single Window System (NSWS).
The units will have two months to register on NSWS. Various byproducts, like cane bagasse, molasses, press mud cake and ethanol, have been included in the control order.
The amended order incorporates definitions from the Food Safety Standard Authority of India for various sugar products and includes clauses related to sugar price regulation, previously part of a separate order.
Sugar exports
Mills might end up exporting 0.8 million tonnes of sugar — one million tonnes is allocated for 2025-26 season — due to low demand. The balance 0.2 million tonnes will be ploughed back into the country. India has so far exported 0.3 million tonnes of sugar this year.
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