The National Federation of Cooperative Sugar Factories Ltd. (NFCSF) convened a high-level brainstorming meeting in Pune to deliberate on the proposed Sugarcane (Control) Order–2026, with leaders of the cooperative sugar sector strongly advocating reforms aimed at safeguarding farmers’ interests, strengthening cooperative mills and ensuring long-term sustainability of India’s sugar economy.
The meeting brought together senior leaders and stakeholders from the cooperative sugar industry, including NFCSF President Harshvardhan Patil, former Maharashtra ministers Dilip Walse Patil, Rajesh Tope and Balasaheb Patil, along with NFCSF Director Jai Prakash Dandegaonkar, directors of the federation and representatives of cooperative sugar factories from different states.
During the deliberations, participants expressed concern over rising production costs, fluctuating sugar prices and mounting financial pressures on cooperative mills. A major focus of the discussion was the need to establish a stronger linkage between the Fair and Remunerative Price (FRP) paid to sugarcane farmers and the Minimum Selling Price (MSP) of sugar.
Industry representatives argued that unless sugar MSP is revised periodically in line with FRP hikes and operational costs, cooperative mills would continue to face liquidity stress, ultimately affecting timely cane payments to farmers.
The meeting also strongly supported continuation of the reserved cane area system and retention of minimum distance norms between sugar mills. Participants observed that these provisions have historically helped maintain stability in cane supply, avoided unhealthy competition among mills and protected farmers from exploitation.
Cooperative leaders cautioned that dilution of such safeguards could adversely impact rural economies dependent on the sugar sector.
Another key area of discussion was the growing role of ethanol and biofuel production in strengthening the financial viability of sugar mills. Participants urged the Government of India to provide policy support for ethanol expansion through rationalised interest rates on ethanol projects and easier financing mechanisms.
They said the ethanol blending programme has emerged as a major opportunity for the sugar industry to diversify revenue streams while contributing to the country’s energy security goals.
The meeting further emphasised the importance of diversification into value-added by-products such as compressed biogas, green energy, specialty chemicals and other downstream products. Modernisation of sugar mills, adoption of advanced technologies and measures to improve efficiency were also highlighted as essential for ensuring the future competitiveness of cooperative sugar factories.
NFCSF stated that all recommendations emerging from the meeting would be consolidated and submitted to the Government of India for consideration while finalising the Sugarcane (Control) Order–2026 framework.
Cooperative sector leaders expressed hope that the revised policy would strike a balance between farmer welfare, industrial sustainability and the long-term growth of India’s sugar economy.
