India aims for tighter control on sugar’s production chain, cites tech advancements in sector as reason
The Union Government has released the draft Sugar (Control) Order 2024, inviting stakeholder comments by September 23. The draft proposes updated regulations on sugar production, licensing, and pricing, reflecting technological advancements. It grants the Centre power to regulate sugar production, storage, and pricing, considering factors like the fair and remunerative price (FRP) of sugarcane and by-product revenue.
The Union Government has released the draft Sugar (Control) Order 2024 for stakeholder consultation and has sought comments by 23rd September. The draft circular points to need to revamp the existing Sugar (Control) Order in view of changes in the sector due to technological advancements in the production process.
The Draft Sugar Control Order 2024 proposes to allow the Centre or a state with Centre’s approval to exercise power to regulate production of sugar and wants no sugar or its byproduct to be manufactured from sugarcane except under license.
The draft guidelines propose that the Centre may directions to sugar producers or dealers on production, maintenance of stocks, storage, sale, grading, packing in jute bags, marking, weighment, disposal, delivery, price of sugar for sale, distribution or processing of sugar, in addition to the Centre’s power to restrict sale, storage, and disposal of sugar by producers and dealers.
While the Centre intends to retain the power to regulate price of sugar as well as the movement of sugar and its by-products, the draft says that no producer or dealer of sugar shall sell or agree to sell or deliver any kind of sugar and its by-products or remove any kind of sugar from the producers’/dealers’ premises except in accordance with a direction issued in writing by the Centre.
The draft rules further intend to allow the Centre to regulate the price of sugar after taking into consideration the fair and remunerative price (FRP) of sugarcane, the average revenue realisation from by-products generated in the process of sugar production and the approximate & average conversion cost for production of sugar from sugarcane/beetroot.
