Amendments to Sugar Control Order

The Government of India has proposed amendments to the Sugar Control Order of 1966. This initiative aims to improve regulations governing the sugar sector while ensuring fair remuneration for farmers. The amendments target large gur and khandsari units, which are crucial for the sugar industry. These units are primarily located in Uttar Pradesh and Maharashtra.

Background of the Sugar Control Order

The Sugar Control Order was established to regulate the sugar industry in India. It ensures that farmers receive fair prices for their sugarcane. The order has undergone various revisions to adapt to changing market dynamics and technological advancements. The latest amendments reflect the government’s commitment to transparency and fairness in the sector.

Inclusion of Large Gur and Khandsari Units

The proposed amendments will bring 66 large gur and khandsari units under the regulatory framework. These units have a crushing capacity of at least 500 tonnes per day. By including these units, the government aims to enhance price regulation and ensure farmers are paid fairly for their produce.

Impact on Farmers

The amendments are expected to positively impact sugarcane farmers. By improving the accuracy of sugar production estimates, the government can set fair and remunerative prices. This is crucial for the livelihood of farmers who depend on sugarcane cultivation. Approximately 31% of India’s annual sugarcane production is utilised by gur and khandsari units.

Registration on National Single Window System

The new regulations require the identified units to register on the National Single Window System (NSWS) within two months. This digital platform aims to streamline processes and improve compliance. Registration will facilitate better monitoring and regulation of the sugar sector.

Inclusion of Byproducts in the Control Order

The amended order now includes various byproducts of sugar production. These include cane bagasse, molasses, press mud cake, and ethanol. By regulating these byproducts, the government aims to promote sustainable practices within the industry.

Current Sugar Export Scenario

India’s sugar export situation remains challenging. Mills are expected to export approximately 0.8 million tonnes of sugar for the 2025-26 season. This is due to low demand in international markets. The government has already exported 0.3 million tonnes this year, indicating a cautious approach to exports.

Wheat Procurement Review

In addition to sugar, the government is assessing wheat procurement under the Public Distribution System. Currently, 25.6 million tonnes of wheat have been procured, marking a 25% increase from last year. However, discussions on wheat exports remain on hold.

Future Implications

These amendments are a step towards modernising the sugar industry. They reflect the government’s recognition of the need for a fair and efficient regulatory framework. The focus on farmer welfare and sustainable practices is expected to shape the future of the sugar sector in India.

Questions for UPSC:

1. Examine the significance of the Sugar Control Order in regulating the sugar industry in India.
2. Critically discuss the implications of including large gur and khandsari units under the Sugar Control Order.
3. Point out the challenges faced by India in sugar exports and their impact on the domestic market.
4. Analyse the relationship between wheat procurement policies and food security in India.

Answer Hints:

1. Examine the significance of the Sugar Control Order in regulating the sugar industry in India.

1. Established in 1966 to ensure fair pricing for sugarcane farmers.
2. Regulates production, distribution, and pricing of sugar in the country.
3. Enables the government to respond to market fluctuations and protect farmer interests.
4. Incorporates definitions from the Food Safety Standard Authority of India for clarity.
5. Facilitates transparency and accountability in the sugar sector.

2. Critically discuss the implications of including large gur and khandsari units under the Sugar Control Order.

1. Brings 66 large units into regulatory oversight, enhancing price control.
2. Ensures fair remuneration for farmers based on accurate sugar production estimates.
3. Promotes compliance and accountability among larger producers.
4. Addresses the share (31%) of sugarcane used by these units.
5. Facilitates better monitoring of production practices and sustainability.

3. Point out the challenges faced by India in sugar exports and their impact on the domestic market.

1. Low international demand limiting export volumes (expected 0.8 million tonnes).
2. Domestic prices influenced by global market conditions and supply chain issues.
3. Current exports (0.3 million tonnes) indicate cautious market strategies.
4. Potential surplus sugar leading to price volatility in the domestic market.
5. Impact on farmers’ incomes and overall sugar industry stability.

4. Analyse the relationship between wheat procurement policies and food security in India.

1. Government procured 25.6 million tonnes of wheat, a 25% increase from last year.
2. Procurement policies aim to stabilize food supply and prices for consumers.
3. Public Distribution System (PDS) plays important role in ensuring food access.
4. Current review of policies indicates a responsive approach to changing food security needs.
5. Wheat procurement directly impacts inflation and food availability, critical for food security.