India's Centre Withdraws Controversial Sugarcane Order Following Stakeholder Objections
Centre withdraws draft sugarcane order after objections from states, stakeholders
Image: The Economic Times
The Indian government has retracted the draft Sugarcane (Control) Order, 2026, due to concerns raised by state governments and stakeholders. The proposed order aimed to modernize regulations but faced backlash from farmers and khandsari units over its definitions and implications for small-scale operations.
- 01The draft Sugarcane (Control) Order, 2026, intended to replace the 60-year-old Sugarcane (Control) Order, 1966.
- 02It proposed to regulate the ethanol and khandsari sectors, which faced opposition from farmers and khandsari units.
- 03The new definition of khandsari units would have included more small-scale operations, impacting farmers' income.
- 04BJP MP Sanjeev Balyan stated that the withdrawal reflects the government's commitment to farmers' welfare.
- 05The Food Ministry had set a May 20 deadline for public comments on the draft.
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The Indian government has withdrawn the draft Sugarcane (Control) Order, 2026, following significant objections from state governments and various stakeholders. The draft aimed to replace the longstanding Sugarcane (Control) Order, 1966, and included proposals to bring the ethanol and khandsari sectors under government regulation. However, this move faced strong pushback from khandsari units and farmers, particularly due to a proposed redefinition of khandsari units that would classify those with over 10 workers and a crushing capacity exceeding 500 tonnes per day as regulated entities. This change could have adversely affected many small-scale, labor-intensive units, which typically provide better prices to farmers compared to sugar mills. BJP MP Sanjeev Balyan emphasized that the decision to withdraw the order demonstrates the government's prioritization of farmers' interests under Prime Minister Narendra Modi's leadership. The Food Ministry had previously circulated the draft for public comments, with a deadline set for May 20.
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The withdrawal of the draft order is expected to benefit small-scale khandsari units and farmers, who generally receive better prices from these units.
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