Centre Revokes Draft Sugarcane Control Order Following Opposition from Khandsari Units and Farmers

The Central Government has decided to withdraw the draft Sugarcane (Control) Order, 2026, in response to objections raised by various state governments and stakeholders in the sugar and ethanol industries. This proposed legislative framework sought to modernize the existing Sugarcane (Control) Order of 1966, aiming to enhance regulations surrounding the production of ethanol and the khandsari sugar sector.

Key concerns contributing to the withdrawal included the redefinition of khandsari units and the potential negative impacts on small-scale sugar producers. The khandsari process, which involves the small-scale manufacturing of sugar, primarily using traditional methods, is crucial for many local economies, especially in rural areas.

In light of these issues, the government has opted to revisit the draft order for further review and stakeholder consultation. This decision reflects the administrations commitment to balancing regulatory updates with the interests and needs of various industry participants, including small operators who play a significant role in the sugarcane supply chain.

Moving forward, it is anticipated that the government will engage with stakeholders to address their concerns while still seeking to enhance the efficiency and sustainability of the sugarcane sector in India. The sugar industry remains a vital part of the countrys economy, contributing significantly to rural livelihoods and agricultural output.