Sugar Production, Pricing Norms May Undergo Major Changes

The Centre is planning to bring about certain key changes in its Sugar (Control) Order keeping in mind several technological advancements in the production of the sweetener. According to officials, the existing order is almost 60 years old and needs a relook. The Ministry of Consumer Affairs, Food and Public Distribution has elicited comments from stakeholders by September 23 on the draft of 'The Sugar (Control) Order, 2024, for regulating the production of the sweetener as well as its by-products, including ethanol.

Sources said that there is a need to review the Sugar (Control) Order of 1966 in view of technological advancements in the production process. Once the draft is approved, the Centre or the State can direct that no sugar and its by-products shall be manufactured from sugarcane except under and in accordance with the conditions specified in a licence issued on this behalf.

The draft order gives details of the power of the government to regulate the production of sugar as well as restrict its sale, storage and disposal by producers and dealers. It defines by-products as any form of product which has been produced during the production of sugar namely ethanol (produced from B-heavy/C-heavy molasses, sugarcane juice, sugar syrup, sugar), bagasse, potash-based fertilisers, Compressed Bio Gas (CBG), C-heavy molasses, bio-electricity produced from bagasse, press cake or any other alternative product affecting sugar production from sugarcane.

The Centre shall also be empowered to restrict the sale, storage and disposal of sugar by producers and dealers once the draft gets the approval of the government.