Key Highlights
- Government withdraws Sugarcane (Control) Order, 2026 draft.
- Proposed order aimed to replace the 1966 Sugarcane Control Order.
- Decision taken after objections from states, farmers, and industry stakeholders.
- Draft proposed major changes in the definition of Khandsari units.
- Farmers feared stricter regulations could reduce competition and impact cane prices.
- Khandsari units currently offer higher cane prices in many regions.
- Draft will now be reviewed and revised before any further action.
The Central Government has withdrawn the draft of the Sugarcane (Control) Order, 2026, which was proposed to replace the nearly 60-year-old Sugarcane (Control) Order, 1966. The decision was taken after multiple state governments, farmer organizations, and industry stakeholders raised objections to several provisions in the proposed framework.
According to the Ministry of Consumer Affairs, Food and Public Distribution, the draft will now undergo a fresh review process based on the suggestions and comments received from stakeholders. The government had earlier invited public feedback on the proposal, with May 20, 2026 set as the deadline for submissions.
One of the most controversial proposals involved revising the definition of Khandsari units. The draft proposed classifying units with more than 10 workers and a crushing capacity of over 500 tonnes per day under the regulatory framework. Under existing rules, a Khandsari unit is defined as one employing 20 or more workers, with no specific capacity limit. Industry representatives and farmers argued that the proposed change would bring many small and medium-scale Khandsari units under stricter regulation.
Farmer groups expressed concern that the new rules could negatively impact sugarcane growers because Khandsari units often offer better prices for cane compared to traditional sugar mills. Following widespread opposition, the government decided to withdraw the draft for reconsideration. BJP MP Sanjeev Balyan welcomed the move, stating that the decision reflects the government’s commitment to protecting farmers’ interests and ensuring policy decisions are made with stakeholder consultation.
Why It Matters
- Protects the interests of sugarcane farmers.
- Prevents immediate regulatory changes for Khandsari units.
- Maintains existing market competition between sugar mills and Khandsari producers.
- Signals the government’s willingness to revise policies based on stakeholder feedback.
