The Ministry of Consumer Affairs, Food & Public Distribution has released the draft Sugarcane (Control) Order 2026.

• It seeks to replace the 1966 order and modernise regulations in the sugar sector.

Key Features of the Draft Order

•  Provisions for Ethanol 
  • The draft expands the definition of a sugar factory to cover ethanol production from sugarcane juice, syrup, sugar, and molasses.
  • Factories established exclusively to produce are exempt from the requirement to submit the ₹2 crore performance bank guarantee
  • Formula for a Conversion Rate: It will be calculated by treating every 600 liters of ethanol as equivalent to one tonne of sugar production.
• Timely payment of Fair and Remunerative Price (FRP):
  • Sugar producers must pay farmers and cooperatives within 14 days of sugarcane delivery.
  • Failure to do so will attract an interest penalty of 15% per annum for the period of delay.
• Khandsari Sugar regulation: It is brought under FRP regime and made subject to mandatory licensing.