New Cane Control Order 2026 to replace 1966 law; 14-day payment rule to aid farmers
India plans to replace the 1966 sugarcane order with a new Cane Control Order 2026, boosting transparency and farmer protection. The draft mandates 14-day payments with penalties for delays, expands focus to ethanol, and empowers authorities for recovery—aiming to modernize the sector and ensure timely dues for farmers.
The Centre is set to introduce a new regulatory framework for the sugar sector, replacing the six-decade-old Sugarcane Control Order 1966 with a revised Cane Control Order 2026, aimed at improving transparency and ensuring timely payments to farmers.
The proposed order expands the scope of the industry by giving ethanol equal importance alongside sugar. It also brings cane juice, syrup and molasses under the policy framework, allowing sugar mills to operate as integrated energy units rather than just sugar producers.
A key provision in the draft mandates that mills must pay farmers within 14 days of cane supply as per the Fair and Remunerative Price (FRP). In case of delays, mills will be liable to pay 15% annual interest on the outstanding amount.
The new framework also treats unpaid cane dues as land revenue arrears, enabling stricter recovery through district authorities, who have been given special powers to act against defaulters.
Officials said the changes are aimed at addressing current industry challenges and aligning the sector with evolving technologies and market conditions. The draft has been released for public consultation, with stakeholders invited to submit suggestions and objections by May 20, after which the final policy will be implemented.
The move is expected to streamline operations in the sugar sector and provide long-awaited relief to farmers affected by delayed payments.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Chinimandi
