Centre Withdraws Draft Sugarcane (Control) Order, 2026 Amid Opposition From Farmers and Khansari Industry
The central government has withdrawn the draft Sugarcane (Control) Order, 2026 following widespread opposition from farmers' organizations and stakeholders in the jaggery and khandsari sectors.
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The central government has withdrawn the draft Sugarcane (Control) Order, 2026 following opposition from farmer organizations and stakeholders in the jaggery and khandsari sectors. The move marks a retreat from the proposed amendments to the existing Sugarcane (Control) Order, 1966 after concerns were raised over several contentious provisions.
In an office memorandum issued on May 29, 2026, the Department of Food and Public Distribution announced the withdrawal of the draft order. The proposed regulations had triggered apprehensions among sugarcane farmers as well as operators of jaggery, khandsari and crusher units regarding their potential impact on the sector.
The department said that comments and suggestions received from state governments and various stakeholders during the consultation process would be examined before any further action is taken. Accordingly, it has been decided to formally withdraw the draft Sugarcane (Control) Order, 2026 for reconsideration.
The draft order had been released on April 20, 2026 for public comments and suggestions as part of the government's efforts to revise the Sugarcane (Control) Order, 1966. Stakeholders were given one month to submit their feedback.
According to the office memorandum, a large number of comments and suggestions were received from state governments and other stakeholders during the consultation period. After reviewing the feedback, the government concluded that the proposed order required further deliberation and review before it could be taken forward.
Among the most controversial provisions in the draft was a proposal to increase the minimum distance between two sugar mills from 15 kilometres to 25 kilometres. The draft also sought to make it mandatory for crusher and khandsari units to pay the Fair and Remunerative Price (FRP) to sugarcane farmers, along with stricter regulatory requirements similar to sugar mills.
Critics argued that the proposed changes could strengthen the monopoly of sugar mills in sugarcane-growing regions while making it difficult for jaggery, khandsari and crusher units, which play an important role in the rural economy, to operate viably. Farmer groups and khandsari industry representatives had consistently opposed the draft, warning that it could adversely affect competition and farmers' interests.
NDA partner Rashtriya Lok Dal president and Union minister Jayant Chaudhary had held discussions with representatives of the farming community regarding the proposed changes.
The withdrawal of the draft order is being viewed as a significant policy reversal. With assembly elections scheduled in Uttar Pradesh in 2027, the government's decision is likely to ease concerns among sugarcane farmers in one of the country's largest cane-producing states and avert a potentially contentious political issue.
