Pune: The Ministry of Food, Consumer Affairs, and Public Distribution has consolidated the Sugar Control Order of 1966 and the Sugar Price Control Order of 2018 to formulate the new Sugar Control Order 2024. This revised order includes amendments to 15 key provisions, which are expected to have a substantial impact on India's sugar industry.
The revised order has prompted sugar mill owners, ISMA (Indian Sugar Mills Association), and sugar tendering firms to take a cautious stance. While no direct opposition has been voiced, there is a consensus to raise formal objections. A major meeting was held in Pune to address these concerns, with 55 representatives from across the nation attending the session.
During a press conference, Harshvardhan Patil, President of the National Cooperative Sugar Factories Federation, provided detailed information on the changes.
Accompanying him were key industry figures, including Prakash Naiknavare, the Federation's Managing Director, and Prataprao Ohol, Vice President of the State Sugar Federation.
Patil emphasized that the sugar industry is not solely governed by the Ministry of Food, Consumer Affairs, and Public Distribution but also involves the Ministries of Cooperation, Finance, Petroleum, and Energy. Therefore, the opinions of these departments must be considered when making amendments to the Sugar Control Order.
Among the 15 provisions introduced, one major change is the inclusion of by-products like molasses, bagasse, ethanol, cogeneration of power, compressed biogas (CBG), compressed natural gas (CNG), and green hydrogen.
Income derived from these by-products will now be recognized as part of the sugar mills' revenue stream, a significant shift that could affect the profitability of these businesses.
Additionally, the new order brings under its scope the production of khandsari (unrefined sugar) and jaggery. It also introduces tighter controls on the production, storage, transportation, and sale of sugar, while establishing new standards for sugar packaging and quality.
Another crucial amendment allows for the sale of raw sugar in the domestic market, which could lead to shifts in market dynamics.
At the Pune meeting, the changes were extensively discussed, and it was decided that private sugar mills would submit additional points for consideration. Once finalized, the objections and suggestions will be sent to the Central Government for review.
Patil concluded by stating, "We neither oppose nor support these changes at this moment. We will form our final opinion after thorough study. With an industry valued at ₹12.5 lakh crore, involving 50 million sugarcane farmers cultivating on 5.5 million hectares, it is crucial that our perspective is taken into account when making legislative changes."
