Govt plans to review 6-decade-old sugar production, pricing norms

The food ministry plans to revamp the nearly six-decade-old regulation regarding production, storage and pricing of sugar to align it with technological advancements.

In this regard, the Ministry of Consumer Affairs, Food and Public Distribution has issued the draft 'The Sugar (Control) Order, 2024'.

The ministry proposes to review the Sugar (Control) Order of 1966 due to the technological advancements in the production process.

"...there are multiple changes in the sugar sector which necessitates the revamping of existing the Sugar (Control) Order, 1966," said the ministry while issuing the draft.

The draft order details power the government to regulate production of sugar as well as restrict its sale, storage and disposal by producers and dealers.

 

The ministry has invited stakeholders' comments on the draft by September 23.

On power to regulate price of sugar, the draft says: "The Central Government shall, at the time of issuing any order regarding price of sugar for sale...take into consideration the fair and remunerative price (FRP) of sugarcane, approximate and average conversion cost for production of sugar from sugarcane/beetroot, average revenue realisation from by-products generated in the process of sugar production".

The draft also details power of the government regarding inspection, entry, search, sampling and seizure in relation to sugar production.

The central government or the state government can issue orders that no sugar and its byproducts should be manufactured from sugarcane except under and in accordance with the conditions specified in the licence issued to the producer, the draft said.

It also specifies that the central government's power to restrict sale, storage and disposal of sugar by producers and dealers.