Sugarcane farmers seek major revisions to draft Sugarcane Control Order 2026
All India Sugarcane Farmers Federation urged the government to amend the Draft Sugarcane Control Order 2026 by revising FRP calculations, enforcing timely cane payments, sharing ethanol profits with farmers, opposing increased mill distance norms, and strengthening cooperative sugar mills to better protect growers and agricultural workers.
New Delhi: The All India Sugarcane Farmers Federation (AISFF) has called for significant changes to the proposed Draft Sugarcane Control Order 2026, arguing that the new framework must better protect the interests of sugarcane farmers and agricultural workers amid the rapid expansion of India’s ethanol and sugar industries.
In a memorandum submitted to Union Food and Public Distribution Minister Prahlad Joshi, the federation urged the Centre to revise several key provisions of the draft order, including the methodology used for fixing the Fair and Remunerative Price (FRP) of sugarcane, Rural Voice reported.
The AISFF opposed the proposal to calculate FRP based on a sugar recovery rate of 10.25 percent, describing it as unfair to growers in many cane-producing states. Instead, the organisation demanded that the FRP be fixed on the basis of a 9.5 percent recovery rate, which it said more accurately reflects average recovery levels in several regions.
The federation also renewed its demand for sugarcane prices to be determined according to the Swaminathan Formula of C2+50 percent, which recommends that farmers receive a minimum profit margin of 50 percent above their comprehensive cost of cultivation.
Raising concerns over the growing focus on ethanol production, the AISFF said the draft order places greater emphasis on supporting the ethanol sector while overlooking the interests of millions of sugarcane farmers and agricultural workers. According to the federation, sugar mills are increasingly generating additional income through ethanol production, power generation and fertiliser manufacturing, but farmers are not receiving a share of those benefits.
The organisation demanded that 50 percent of the surplus generated from the sale of ethanol and other by-products be shared with sugarcane growers and workers, arguing that they are the primary contributors to the value chain.
Highlighting the scale of the industry, the memorandum noted that sugarcane cultivation is estimated to cover 57.35 lakh hectares during the 2025-26 season. It also stated that around 67.7 lakh agricultural labourers are engaged in sugarcane cultivation, harvesting and transportation activities across the country.
According to the federation, small and marginal farmers account for the vast majority of the country’s 55.7 lakh registered sugarcane growers, with more than half owning less than one hectare of land. The organisation said these farmers remain particularly vulnerable to delayed payments from sugar mills.
The AISFF also expressed concern over mounting cane payment arrears, stating that the existing provision requiring mills to make payments within 14 days has not been effectively enforced. It called for stricter accountability measures and mandatory payment of interest on delayed dues.
Another major concern raised by the federation was the proposal to increase the minimum distance between two sugar mills from 15 kilometres to 25 kilometres. The organisation argued that such a move could reduce competition among mills, create monopolistic conditions and weaken farmers’ bargaining power.
On the cooperative sector, the federation advocated for the modernisation and strengthening of cooperative and public sector sugar mills. It also called for regular elections to cooperative sugar factory boards and greater fiscal and administrative autonomy for farmer-led cooperative institutions.
The demands reflect growing concerns among farmer organisations that future reforms in the sugar and bioenergy sectors should ensure that the benefits of industry growth are shared more equitably with sugarcane growers and agricultural workers.
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Source : ChiniMandi
