New Delhi: The Union Government has withdrawn the draft Sugarcane (Control) Order, 2026, following widespread feedback and objections from state governments, farmer organisations and industry stakeholders.
In an office memorandum issued on Friday, the Department of Food and Public Distribution said the draft order, released on April 20 for public consultation, stood withdrawn.
The proposed order was intended to replace the existing Sugarcane (Control) Order, 1966, and sought to modernise regulations governing sugar production, procurement and distribution in line with technological advancements and the growing role of ethanol in the sector.
The draft would have empowered the Centre to determine the Minimum Selling Price (MSP) of sugar, regulate sugar release quotas, oversee exports and imports, and require manufacturers to obtain licences. It also proposed bringing raw sugar and larger khandsari units under stricter central regulation.
However, several provisions triggered strong opposition from farmer groups and the khandsari industry.
One of the most controversial proposals sought to make licences mandatory for gur and khandsari units while requiring them to pay farmers the Fair and Remunerative Price (FRP) for sugarcane. Farmer organisations argued that the move would place additional regulatory burdens on smaller, traditional units that form an important part of the rural economy.
Another major point of contention was the proposal to increase the minimum distance between sugar mills from 15 kilometres to 25 kilometres, a move critics said could strengthen the dominance of large sugar mills and reduce competition in cane-growing regions.
Farmer groups also objected to the draft’s definition of sugarcane crushers. The Bharatiya Kisan Union (Apolitical) argued that traditional crushers and modernised kolhus should be treated under a single category, noting that many now use advanced machinery comparable to that employed by khandsari units.
Opponents of the draft warned that the proposed regulations could make it difficult for jaggery, khandsari and crusher units to operate sustainably, potentially affecting farmers’ ability to secure competitive prices for their produce.
Representatives of the farming community had also raised concerns with Rashtriya Lok Dal president and Union Minister of State Jayant Chaudhary, who held discussions with stakeholders regarding the proposed changes.
The withdrawal of the draft order is being viewed as a significant policy reversal by the Centre. Analysts believe the move could help ease concerns among sugarcane farmers, particularly in Uttar Pradesh, one of India’s largest sugarcane-producing states, ahead of the 2027 Assembly elections.
The government has not announced a timeline for introducing a revised draft, indicating that the proposal will undergo further review before any fresh version is brought forward.
