India Proposes 2026 Sugarcane Control Order Overhauling 1966 Legislation
The Indian government has proposed a new Sugarcane (Control) Order, 2026, aiming to replace the existing framework from 1966. This overhaul is designed to address advancements in the sugar sector and formalize ethanol production within sugar mills, potentially transforming industry pricing and compliance.
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The Indian Union government has drafted the Sugarcane (Control) Order, 2026, to replace the 1966 law governing the sugar sector. This new regulation recognizes ethanol as a primary output, equating 600 liters of ethanol to one tonne of sugar, which may alter production assessments.
The Fair and Remunerative Price (FRP) for sugarcane will persist, with mills required to pay farmers within 14 days, incurring a 15% annual interest on delays. New sugar factories are restricted within 25 kilometers of existing mills, and transfer of Industrial Entrepreneur Memorandums before production is prohibited.
Stakeholders, including various ministries and industry associations, are invited to provide comments by May 20, 2026. The draft aims to align with India's biofuel objectives, potentially enhancing the sugar industry’s economic framework.
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