The Government of India has conducted an in-depth review of the Sugar (Control) Order, 1966, resulting in the creation of the new Sugar (Control) Order, 2025. This revised order seeks to simplify and modernize the regulatory framework for the sugar industry, aligning it with current industry trends and technological progress.
Indian Sugar and Bio-energy Manufacturers Association (ISMA) commends Department of Food and Public Distribution (DFPD) for these progressive reforms, aimed at creating a more transparent, efficient, and accountable sugar ecosystem. “These changes are expected to ensure stability in domestic markets and enhance the sector’s competitiveness globally,” ISMA said in a statement.
Key Highlights of the Sugar (Control) Order, 2025:
Digital Integration with Sugar Mills:
The new order mandates API-based integration between the DFPD portal and sugar mills’ ERP or SAP systems, enabling real-time data sharing. This minimizes redundancies and data leakages. Over 450 sugar mills are already integrated, and GSTN data on sugar sales is now linked for enhanced oversight and efficiency.
Unified Pricing Regulation:
Provisions from the earlier Sugar Price (Control) Order, 2018, have been consolidated into the new order, streamlining regulations and offering greater clarity to stakeholders.
Inclusion of Raw Sugar Under Regulation:
Raw sugar is now officially regulated and included in national sugar stock calculations. This move aligns with international standards and eliminates misleading labels like “khandsari” or “organic” for raw sugar.
Regulation of Khandsari Units:
For the first time, khandsari sugar factories with a crushing capacity over 500 tonnes per day (TCD) are brought under regulatory oversight. This ensures mandatory payment of the Fair and Remunerative Price (FRP) to farmers and enhances the accuracy of sugar production data. Of 373 khandsari units in India, 66 exceed the 500 TCD threshold.
Standardised Definitions:
Definitions for various sugar types—plantation white sugar, refined sugar, khandsari sugar, jaggery, bura, cube sugar, and icing sugar—are now aligned with those set by the Food Safety and Standards Authority of India (FSSAI), ensuring consistency across the sector.
