Govt Set to Modernize Age-Old Sugar Production and Pricing Rules

The Ministry of Consumer Affairs, Food and Public Distribution is set to overhaul the nearly six-decade-old regulation governing sugar production, storage, and pricing. This initiative aims to align with modern technological advancements. The ministry has released a draft of The Sugar Control Order, 2024, inviting stakeholders to submit their comments by September 23.

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Technological Advancements Prompt Review

The ministry highlighted the need to update the Sugar Control Order of 1966 due to significant technological changes in the sugar sector. "There are multiple changes in the sugar sector which necessitates the revamping of existing the Sugar Control Order, 1966," stated the ministry while issuing the draft. The proposed order grants the government authority to regulate sugar production and restrict its sale, storage, and disposal by producers and dealers.

Regulating Sugar Prices

Regarding sugar pricing, the draft specifies that the Central Government will consider several factors before issuing any price-related orders. These factors include the fair and remunerative price (FRP) of sugarcane, average conversion costs for producing sugar from sugarcane or beetroot, and average revenue from by-products generated during sugar production.

Inspection and Compliance

The draft also outlines the government's powers concerning inspection, entry, search, sampling, and seizure related to sugar production. Both central and state governments can issue orders ensuring that no sugar or its by-products are manufactured from sugarcane unless under specific conditions outlined in a licence issued to the producer.

The proposed regulations aim to bring about a comprehensive update to align with current industry practices and technological advancements. The ministry's initiative reflects a broader effort to modernise regulatory frameworks in response to evolving industry standards.