Sugar Control Order Being Amended To Bring Khandsari Units Above 500 Ton Capacity Under regulation

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New Delhi, May 3 (KNN) The Central government has proposed draft amendments to the Sugar Control Order of 1966 aimed at ensuring fair and remunerative prices (FRP) for sugarcane farmers. 

The move seeks to bring 66 large gur and khandsari sugar units—each with crushing capacities above 500 tonnes per day—under regulatory control.

These units, primarily located in Uttar Pradesh and Maharashtra, will now be required to register on the National Single Window System (NSWS) within two months. The amendments will help monitor payments to farmers and improve accuracy in estimating sugar production.

“This revision simplifies and modernizes regulations to align with the current industry landscape,” said Food Secretary Sanjeev Chopra. He added that the changes are expected to benefit cane growers by ensuring prompt and fair payments, especially from khandsari producers.

Approximately 31 per cent of India’s annual sugarcane output—435 million tonnes—is processed by gur, khandsari, and jaggery units. Improved oversight of these units is expected to stabilize the sugar sector and promote transparency.

The amended order also integrates definitions from the Food Safety and Standards Authority of India (FSSAI) and covers sugar byproducts such as bagasse, molasses, ethanol, and press mud cake. It also absorbs price regulation clauses that were earlier part of a separate order.

Separately, the government ruled out wheat exports for now, citing ongoing procurement efforts. Chopra noted that 25.6 million tonnes of wheat have already been procured this year, 25 per cent higher than last year.

On the sugar export front, India has shipped 0.3 million tonnes so far and may export up to 0.8 million tonnes this season, with 0.2 million tonnes reserved for domestic use.

(KNN Bureau)



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