On May 1, in exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955 (10 of 1955) and in supersession of the Sugar (Control) Order, 1966 and the Sugar Price (Control) Order, 2018, expect as respects things done or omitted to be done before such supersession, the Central Government issued Sugar (Control) Order, 2025.
Key Highlights of the Sugar (Control) Order, 2025 for sugar traders, suppliers, big chain retailer, dealers:
- Clause 2(g) of Sugar (Control) Order, 2025 defines the definition of “dealer” – which means any person engaged in the business of purchase, movement, sale, supply, distribution, storage or processing of sugar, whether as a wholesaler or retailer or big chain retailer or processor or importer or exporter and whether or not in conjunction with any other business and includes his representatives or agent.
- Order sheds lights on power to regulate sale, storage, disposal etc. of sugar, which states that the Central Government may, direct that no producer shall sell or agree to sell or otherwise dispose of, or deliver any kind of sugar or remove any kind of sugar from the producers’ premises except under and in accordance with a direction issued in writing by the Central Government:
-Provided that this clause shall not affect the pledging of such sugar by any producer or dealer in favour of any scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934) or any of corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or any Non-Banking Financial Companies as licensed by the Reserve Bank of India and no such bank or financial institution shall sell the sugar pledged to it except under and in accordance with a direction issued in writing by the Central Government. - Order emphasizes on power to issue directions to producers and dealers. It states that the Central Government may, from time to time, by general or special order, issue to any producer or dealer or any class of producers or dealers, such directions regarding the production, maintenance of stocks, storage, sale, grading, packaging, marking, weighment, disposal, delivery, minimum price of sugar for sale, distribution or processing of any kind of sugar and its by-products, as it may deem fit.
- The sugar attached by the Central Government or by the State Government not to be sold without direction. – (1) Where any stock of sugar with any producer or dealer is attached or seized,- (i) by any officer of the Central or a State Government in accordance with the provisions of any enactment for the time being in force; or (ii) in pursuance of any proceedings in civil court.
- Clause 8 (2) states that the sugar so attached or seized shall not be ordered to be sold unless the officer or Court is satisfied that directions have been issued by the Central Government under clause 7 of Sugar (Control) Order, 2025: Provided that stock of sugar, seized by the Government officials shall be released for sale on production of bank guarantee of equivalent value of the stock so seized, until the disposal of the case.
- Sugar (Control) Order, 2025 speaks about power to regulate minimum selling price of sugar. It states that the Central Government shall, at the time of issuing any order regarding minimum selling price of sugar for sale under clause 7, take into consideration the fair and remunerative price of sugarcane, approximately and average conversion cost and such other financial cost as may be relevant for production of sugar from sugarcane or beetroot, or as the case may be, average revenue realisation from primary by-products (molasses, bagasses and press mud) generated in the process of sugar production.
- This order stresses on power to regulate movement of sugar. It says that the Central Government may, direct that no person shall transport or offer or accept for transport by any means of transport, sugar, except under- (a) a general or special permit issued in this behalf; and (b) a military credit note.
- Clause 12 of Sugar (Control) Order, 2025 emphasizes on power to call for information, etc. It states that the Central Government or any person authorised in this behalf by the Central Government may, with a view to secure compliance with this order or to satisfy itself that any order or direction issued under this order is complied with, require any producer or dealer to furnish within such period or at such intervals as may be specified, such information, returns or reports and in such forms including digital forms through Application Programing Interface or any other mode and to allow information sharing with any Government Organisation to ensure authenticity of data and compliance, as may be required; and the data shall not be shared with any third party and shall be exclusively used for Government purposes.
- This order also says about power of inspection, entry, search, sampling, seizure, etc. –(1) Any officer authorised by the Central Government in this behalf, may,-(a) direct any producer or dealer to maintain such records as he may specify;
(b) direct any producer or dealer to furnish such information as he may require;
(c) inspect or authorise any person to inspect any books or any documents or stocks of sugar belonging to or under the control of a producer or dealer;
(d)(ii) enter and search or authorise any person to enter and search any place in which there is reason to believe that sugar is stored in contravention of this order
(e) draw or authorise any person to draw, in accordance with the procedure prescribed in clause 14, samples for examination, –
(i) from any stock of sugar belonging to, or under the control of a producer or dealer;
(ii) from any consignment of sugar in the course of its delivery or dispatch by a producer;
(f) stop and search or authorise any person to stop and search, – (i) any person transporting sugar; or (ii) any vehicle, vessel or other conveyance used or capable of being used for the transport of sugar in contravention of this order;
(g) seize or authorise the seizure of any sugar in respect of which he has reason to believe that an act in contravention of this order has been, is being or is about to be, committed, along with the packages, coverings or receptacles in which sugar is found or the animals, vehicles, vessels, or other conveyance used in carrying such sugar and thereafter take or authorise the taking of all measures necessary for securing the production of such packages, coverings, receptacles, animals, vehicles, vessels or other conveyances in a Court and for their safe custody pending such production. - The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) with respect to search and seizure shall, apply to searches and seizures under this clause.
- Clause 15 of this order speaks about the compliance of orders and states that every producer or dealer or other person to whom any order or direction is issued under any powers conferred by or under this order, shall comply with such order or direction.
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.
The Sugar (Control) Order, 2025 aims to establish a more efficient, transparent, and accountable sugar ecosystem, promoting stability within the domestic market while enhancing India’s position globally.
