India Notifies Sugar (Control) Order, 2025 to Modernize Sugar Sector Regulation

To align with modern industrial practices, digital technologies, and market realities, the Central Government has replaced the decades-old Sugar (Control) Order, 1966 with the Sugar (Control) Order, 2025. This initiative aims to bring transparency, efficiency, and accountability in sugar production, pricing, and monitoring, strengthening India’s position in the global sugar economy.

Why in the News?

The Government of India has revised and notified the Sugar (Control) Order, 2025, replacing the outdated Sugar (Control) Order, 1966, to modernize and streamline regulations in the sugar sector.

Objective

• To modernize the regulatory framework governing the sugar sector.
• To promote transparency, fair pricing, real-time data availability, and equitable treatment of farmers.

Key Highlights of Sugar (Control) Order, 2025

Digital Integration (API)

• DFPD portal integrated with ERP/SAP systems of over 450 sugar mills.
• GSTN data related to sugar sales now synced with the portal.
• Enhances real-time monitoring, reduces data duplication, and curbs data leakage.

Price Regulation Clause

• Now included within the Sugar (Control) Order itself.
• Replaces the Sugar Price (Control) Order, 2018.

Inclusion of Raw Sugar

• Raw sugar now officially counted in national sugar stock.
• Eliminates misleading sales under names like “organic” or “khandsari”.

Khandsari Sugar Factories Covered

• Units with capacity >500 TCD included (66 units out of 373).
• Ensures payment of FRP (Fair and Remunerative Price) to farmers.

By-Product Regulation

• Includes ethanol, molasses, bagasse, press mud, etc.
• Aims to regulate diversion of sugarcane for by-products to ensure domestic availability.

Standardized Definitions

• Unified definitions for sugar types as per FSSAI norms.
• Includes refined sugar, bura, jaggery, icing sugar, cube sugar, etc.

Static GK

• Department Concerned: Department of Food and Public Distribution (DFPD)
• Linked Ministry: Ministry of Consumer Affairs, Food and Public Distribution
• India’s Rank: One of the top 3 sugar-producing nations globally
• FRP: Minimum price fixed by the government that sugar mills must pay to farmers

Significance

• Enhances governance and traceability in sugar production.
• Supports digital transformation of the sugar supply chain.
• Protects farmer rights, ensures better data for policy planning.
• Boosts India’s efforts to maintain domestic stability and compete globally.

Challenges

• Ensuring compliance by smaller mills
• Managing ethanol diversion without hurting sugar availability
• Smooth transition from old to new definitions and norms