Overview
- The Union Food Ministry released a draft Sugarcane (Control) Order, 2026 for public consultation, replacing the 1966 framework once finalized.
- Ethanol moves into core accounting as 600 litres of ethanol from cane-based feedstock will count as one tonne of sugar for production calculations.
- Mills must pay farmers within 14 days of cane delivery, face 15% annual interest on late payments, and risk recovery of dues as arrears of land revenue.
- New factory rules create a formal approval and lifecycle system with Industrial Entrepreneur Memorandum filing, higher performance bank guarantees of ₹2 crore, strict build and start-up deadlines, and a 25-km minimum distance for new mills.
- Oversight expands to informal khandsari sugar units through licensing and Fair and Remunerative Price coverage, backed by digital tracking with plant codes, API-based reporting, and updated search powers aligned with the 2023 criminal procedure law.