Khandsari units with a daily crushing capacity exceeding 500 tonnes (TCD) will now be required to comply with the same rules and regulations as sugar mills.

The Central government has decided to notify draft amendments to the Sugar Control Order of 1966, said its Food Secretary, seeking to streamline regulations and production of jaggery and khandsari units to pay farmers fairly.

The Central Government has decided to notify draft amendments to Sugar (Control) Order, 1966, to bring Gur and khandsari sugar units under regulatory oversight. Khandsari units with a daily crushing capacity exceeding 500 tonnes (TCD) will now be required to comply with the same rules and regulations as sugar mills, including mandatory payment of the Fair and Remunerative Price (FRP) to sugarcane farmers. With this move, the government has taken a significant step towards tightening regulation over the khandsari sugar industry.

The amendments will enable the government to bring around 66 large gur and khandsari (unrefined raw sugar) units within the Control Order. The units have a sugarcane crushing capacity of at least 500 TCD (tonnes crushed per day) and are largely located in Uttar Pradesh and Maharashtra.

The step will ensure payment of fair and remunerative prices to cane farmers and help in accurate estimation of sugar production. Around 31 per cent of India’ annual sugarcane production of 435 million tonnes is consumed by the gur, khandsari and jaggery units.

“This revision aims to simplify and streamline the regulatory framework governing the sugar sector in line with current industry dynamics and technological advancements,” said Food Secretary Sanjeev Chopra.

It will ensure cane farmers receive fair and remunerative prices from khandsari factories on the basis of improved accuracy in sugar production estimates, he said.

As per the Food Ministry, there are currently 373 operational khandsari units across the country, with a combined crushing capacity of around 95,000 TCD. Of these, 66 units have capacities exceeding 500 TCD, with a combined capacity of about 55,200 TCD. These large units produce a substantial quantity of khandsari sugar and will now be regulated under the Sugar Control Order.

Under the new rules, khandsari units with capacities over 500 TCD will be required to digitally share sugar production data with the government. According to the ministry, this integration of systems will enhance operational efficiency and provide real-time data. Over 450 sugar mills are already integrated with the Food Department’s portal. Additionally, GSTN data related to sugar sales by mills is also integrated with the portal.

The government has also incorporated provisions of the Sugar Price (Control) Order, 2018 into the Sugar (Control) Order, 2025. As a result, there will no longer be a separate Sugar Price (Control) Order.