The Indian Union government is preparing to implement significant reforms in the sugar sector through the draft Sugarcane (Control) Order, 2026. This overhaul aims to enhance ethanol production and empower states by increasing the mandatory distance between sugar mills from 15 km to 25 km. This distance regulation seeks to prevent competition among mills for farmers' sugarcane. Currently, states like Maharashtra, Punjab, and Haryana follow the 25-km rule, while major producers like Uttar Pradesh and Karnataka do not. The new framework will also integrate ethanol production from molasses into the sugar sector, aligning with India's E20 blending program, which mandates mixing ethanol with petrol. The capacity for ethanol production is currently around 20 billion liters annually. Industry representatives have welcomed these changes, noting their potential to improve operations and farmer earnings. Notably, the guaranteed fair and remunerative price for sugarcane will remain at ₹355 per quintal (approximately $4.30 USD), ensuring stable earnings for nearly 50 million cane growers. The reforms are seen as the most substantial since the 2012 changes that eliminated the levy sugar system, reflecting a significant shift in policy towards a more competitive and efficient sugar industry.