The National Federation of Cooperative Sugar Factories Ltd. (NFCSF) has welcomed the Government of India’s notification of the Sugar (Control) Order, 2025, marking the replacement of the decades-old 1966 framework.
This progressive reform seeks to simplify and modernize sugar sector regulations in line with contemporary industry practices and technological advancements. The new Order introduces real-time digital integration via APIs for seamless data sharing between sugar mills and government systems, and consolidates previous provisions, including those under the Sugar Price (Control) Order. It formally brings raw sugar and key by-products such as bagasse, molasses, press mud, and ethanol under regulatory oversight.
Notably, Khandsari units with crushing capacities above 500 TCD are now covered, ensuring proper FRP payments to farmers and contributing to more accurate national production data. The adoption of standardized product definitions based on FSSAI norms further promises improved transparency and consistency across the sector.
Cooperative sugar mills, being farmer-owned institutions, strongly endorse this timely move, which balances the needs of sugarcane farmers (Ganna Kisans), mills, and consumers. NFCSF believes the Order will enhance operational efficiency, ensure timely cane payments, and maintain fair sugar prices. The Federation also urges a similar review of the Sugarcane (Control) Order to align with the sector’s evolving landscape.
Meanwhile, as of May 15, 2025, India’s sugar production has declined by nearly 18%, from 315.40 LMT in 2023–24 to 257.40 LMT in the current season. This drop is due to reduced cane availability and a decline in average recovery rates, which fell from 10.10% to 9.30%.
Total cane crushed also fell from 3122.61 LMT to 2767.75 LMT. Major sugar-producing states saw significant declines—Maharashtra by 29.25 LMT, Uttar Pradesh by 10.90 LMT, and Karnataka by 11 LMT—largely due to lower recovery rates. In contrast, Gujarat and Uttarakhand maintained or slightly improved their performance.
Despite the overall fall, the projected closing stock of around 48–50 LMT should be adequate to meet domestic demand during October and November 2025. Encouragingly, sugar output is expected to rebound in the 2025–26 season due to improved monsoon conditions and increased cane planting in key states.
Ethanol production from sugarcane has seen a slight shortfall, with 32 LMT diverted against the target of 35 LMT, primarily due to the absence of a price revision, making sugar production more attractive. Ex-mill sugar prices remain stable at ?3,880–3,920 per quintal, supported by limited supply and export permissions, which have helped mills clear ?91,000 crore of cane dues—90% of total payments.
NFCSF calls for key policy actions, including an upward revision of the sugar MSP, early declaration of a 50 LMT ethanol diversion target, revision of ethanol prices, and continued export support to maintain industry stability.