Currently unregulated, the khandsari sugar industry has seen rising production. Units with crushing capacity exceeding 500 tonnes per day will now be included in the Sugar Control Order, 2025.
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KAMAL NARANG
The government on Thursday announced that khandsari manufacturers will now be regulated under the Sugar Control Order to ensure payment of fair and remunerative prices (FRP) to cane farmers and help in accurate estimation of sugar production.
The 1966 Sugar Control Order has been amended to include regulation of khandsari sugar makers with 500 tonne crush per day capacity (TCD).
“The amended order will be notified either today or tomorrow in the gazette,” Food Secretary Sanjeev Chopra said at a press conference.
The Sugar (Control) Order, 2025 aims to build a more efficient, transparent, and accountable sugar ecosystem, fostering both domestic stability and global competitiveness.
“This revision aims to simplify and streamline the regulatory framework governing the sugar sector in line with current industry dynamics and technological advancements,” Chopra said.
Growing numbers
Currently unregulated, the khandsari sugar industry has seen rising production. Units with crushing capacity exceeding 500 tonnes per day will now be included in the Sugar Control Order, 2025.
This inclusion will ensure cane farmers receive fair and remunerative prices from khandsari factories on the basis of improved accuracy in sugar production estimates, the secretary said.
According to Ashwani Srivastava, Joint Secretary in the Food Ministry, 373 khandsari units with a total capacity of about 95,000 TCD operate in the country.
“Out of these, 66 units have a capacity of more than 500 TCD. They will now be regulated under the order,” Srivastava said, adding that these units will need to register on the National Single Window System (NSWS).
The units will have two months to register on this digital platform.
The ministry has also included raw sugar in the amended control order to prevent it from being marketed under misleading names like khandsari or organic sugar.
Various by-products including cane bagasse, molasses, press mud cake and ethanol have been included in the order.
“This will help the government to regulate the diversion of sugar to ensure sufficient availability for domestic consumption,” the secretary said.
The amended order incorporates definitions from the Food Safety Standard Authority of India (FSSAI) for various sugar products and includes clauses related to sugar price regulation, previously part of a separate order.
A new clause requires sharing sugar production data digitally with government organisations.
“The integration of systems will enhance efficiency, provide real-time data, reduce data leakages and redundancies,” the joint secretary said, noting that over 450 sugar mills are already integrated with the portal.
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Published on May 1, 2025
