The National Federation of Cooperative Sugar Factories (NFCSF) Limited, an apex body of cooperative sugar mills, has submitted suggestions to the Centre's draft Sugarcane (Control) Order 2026. The key proposal includes the incorporation of dual pricing for sugar, with one rate for commercial use and another for household consumption.
A meeting of NFCSF representatives was held in Pune on Saturday under the chairmanship of its president, Harshvardhan Patil, to deliberate on the new law that will replace the Sugarcane (Control) Order 1966. The representatives reached a consensus on several proposed changes, including a provision that no new sugar mill will be permitted within a 25-kilometer radius of an existing one. While this rule is already in place in Maharashtra, the federation has recommended its extension to all sugarcane-cultivating states.
During the meeting, mill representatives advocated for dual pricing. Currently, sugar sold to industries such as sweetened soda manufacturers, bakeries, and confectioneries is priced at the same rate as that for households. In some cases, bulk industrial buyers receive concessional rates. The proposed dual pricing mechanism aims to address this disparity.
Patil stated, "The deadline for submitting suggestions and objections to the draft law ends on May 20. We have listed several demands for inclusion in the order to benefit the sugar industry and the 5.5 crore cane growers, who are the real stakeholders. Dual pricing—one for sugar used in commercial products and another for household consumption—will help mills secure better prices and stabilize the price of sugar for household use."
India requires approximately 280 lakh tonnes of sugar annually. This quantity has remained relatively stable over the years as consumers shift to sugar-free alternatives. However, sugar for commercial purposes accounts for 60% of total production, while the remaining 40% is used in households for tea and occasional homemade sweets.
Other suggestions from the federation include reducing the interest rate for delayed payment of Fair and Remunerative Price (FRP) to cane growers from 15% to 12% per annum. Mills are currently mandated to pay FRP to farmers within two weeks of harvesting.
"We have also proposed linking sugar prices and ethanol prices with FRP. This will ensure farmers receive realistic prices and mills become financially viable. Additionally, we demand that the Centre maintain a stable policy for at least 10 years to strengthen the industry and make Indian sugar competitive globally," Patil added.
