The Indian government is planning to overhaul the six-decade-old regulations governing sugar production, storage, and pricing to keep pace with technological advancements in the industry. The Ministry of Consumer Affairs, Food and Public Distribution has released a draft titled “The Sugar (Control) Order, 2024,” which proposes significant changes to the existing Sugar (Control) Order of 1966.
The draft order highlights the need for updating regulations due to numerous changes in the sugar sector driven by advancements in production processes. The ministry noted that these changes necessitate a comprehensive revamp of the outdated regulations to better reflect current industry practices and technologies.
The proposed order grants the government authority to regulate various aspects of sugar production, including the ability to control the sale, storage, and disposal of sugar by producers and dealers. It also outlines the government’s power to set sugar prices, taking into account factors such as the Fair and Remunerative Price (FRP) of sugarcane, the average conversion cost from sugarcane or beetroot to sugar, and revenue generated from by-products of sugar production.
Additionally, the draft includes provisions for government inspection, entry, search, sampling, and seizure related to sugar production. The central or state governments may issue directives that restrict the manufacture of sugar and its by-products from sugarcane, requiring compliance with conditions specified in licenses issued to producers.
The ministry has invited comments from stakeholders on the draft order, with a deadline for submissions set for September 23. This initiative is seen as a move to modernize the regulatory framework governing one of India’s key agricultural sectors, ensuring it is better aligned with contemporary practices and technologies.
