Centre withdraws draft Sugarcane Control Order 2026 for fresh stakeholder review
Synopsis
The Centre has pulled back its draft Sugarcane (Control) Order, 2026 — not scrapped it, but sent it back for broader consultation. Coming just days after a 2.81% FRP hike to ₹365 per quintal, the twin moves signal the government is treading carefully on sugarcane regulation ahead of the 2026-27 season, with millions of farmers watching.
Key Takeaways
The Centre formally withdrew the draft Sugarcane (Control) Order, 2026 following feedback from state governments and industry stakeholders.
Minister Jayant Singh welcomed the move on 30 May , calling it a commitment to 'dialogue-based policymaking.' The CCEA recently approved a 2.81% FRP hike to ₹365 per quintal for Sugar Season 2026-27 at a 10.25% basic recovery rate.
Farmers supplying mills with recovery below 9.5% will receive ₹338.3 per quintal with no deduction applied.
The Department of Food and Public Distribution will revisit the draft before any further regulatory action.
The Centre has withdrawn the draft Sugarcane (Control) Order, 2026 for fresh review after receiving feedback from state governments, farmers, and industry stakeholders during the consultation process. The move was welcomed on Saturday, 30 May by Minister of State (Independent Charge) for Skill Development and Entrepreneurship Jayant Singh, who called it a reflection of dialogue-based policymaking.
Why the Draft Was Withdrawn
The Department of Food and Public Distribution, under the Ministry of Consumer Affairs, Food and Public Distribution, confirmed that the draft order would be revisited before any further action. The formal withdrawal communication was dispatched to multiple ministries, including the Ministry of Agriculture and Farmers Welfare, the Department of Consumer Affairs, the Ministry of Petroleum and Natural Gas, the Ministry of Cooperation, and the Department of Legal Affairs.
What the Minister Said
Singh, in a post on X, said the government had taken seriously suggestions from farmers, the jaggery-khandsari industry, and various stakeholders. 'The decision to reconsider this draft reflects a commitment to dialogue-based policymaking,' he wrote. The minister's remarks signal that the Centre intends to return with a revised version after broader consultations rather than abandoning the regulatory exercise altogether.
FRP Hike for Sugar Season 2026-27
The withdrawal comes days after the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved a 2.81 per cent increase in the fair and remunerative price (FRP) of sugarcane to ₹365 per quintal for Sugar Season 2026-27 (October–September), applicable at a basic recovery rate of 10.25 per cent.
A premium of ₹3.56 per quintal will apply for every 0.1 per cent increase in recovery above 10.25 per cent. Conversely, the price will be reduced by ₹3.56 per quintal for each 0.1 per cent drop in recovery, according to the official CCEA statement.
Protection for Low-Recovery Mills
In a farmer-friendly provision, the government decided that no deduction will be made for sugar mills where recovery falls below 9.5 per cent. Farmers supplying to such mills will receive ₹338.3 per quintal for the 2026-27 season. The revised FRP takes effect from 1 October 2026, when the new sugar season begins.
What Happens Next
With the draft order formally withdrawn, the Department of Food and Public Distribution is expected to undertake a wider consultative process before presenting a revised regulation. Industry bodies and farmer groups will likely be central to shaping the next draft. The outcome will have significant implications for India's sugarcane sector, which supports millions of farmers and feeds directly into ethanol blending and sugar export policy.
Point of View
And the distinction matters. The sugarcane sector sits at the intersection of farm income, ethanol blending targets, and sugar export quotas, making any new control order politically and economically loaded. The simultaneous FRP hike suggests the government is managing optics carefully: give farmers a price signal while pausing the regulatory tightening. What remains unclear is whether the revised draft will meaningfully address the jaggery-khandsari industry's structural concerns or simply repackage the same provisions. The Centre's track record on sugarcane regulation — frequently announced, frequently deferred — warrants scrutiny of whether this consultation will produce a durable framework or another round of delay.
NationPress
15 Jul 2026
Frequently Asked Questions
Why did the Centre withdraw the Sugarcane Control Order 2026?
The Centre withdrew the draft Sugarcane (Control) Order, 2026 after receiving suggestions and feedback from state governments, farmers, the jaggery-khandsari industry, and other stakeholders during the consultation process. The Department of Food and Public Distribution confirmed the draft will be revisited before further action.
What is the new FRP for sugarcane in Sugar Season 2026-27?
The Cabinet Committee on Economic Affairs approved a fair and remunerative price of ₹365 per quintal for Sugar Season 2026-27, a 2.81% increase over the previous season, applicable at a basic recovery rate of 10.25%. The new FRP takes effect from 1 October 2026.
What protection exists for farmers supplying low-recovery sugar mills?
Farmers supplying mills where sugar recovery falls below 9.5% will receive ₹338.3 per quintal with no price deduction applied. This provision was introduced specifically to protect the income of farmers linked to less efficient mills.
Which ministries were informed of the withdrawal?
The withdrawal communication was sent to the Ministry of Agriculture and Farmers Welfare, the Department of Consumer Affairs, the Ministry of Petroleum and Natural Gas, the Ministry of Cooperation, and the Department of Legal Affairs, among others.
What happens next with the Sugarcane Control Order?
The Department of Food and Public Distribution is expected to conduct a broader consultative process before presenting a revised draft. No timeline has been officially announced for when the revised order will be circulated.
