New Sugar (Control) order 2025 to improve transparency, enhance efficiency and reduce leakages

Under the new Sugar (Control) Order, 2025 released on May 1,2025, the government has brought khandsari units with a crushing capacity above 500 tonnes per day (500 TCD) under regulatory oversight for the first time.

- SC Dhall

The shift to digital reporting is expected to improve transparency, enhance efficiency, reduce data leakages, and enable real-time monitoring of sugar production and movement.

The objective of the Sugar (Control) Order, 2025 is a step toward building a more efficient, transparent, and accountable sugar ecosystem, fostering both domestic stability and global competitiveness according to Mr. Sanjeev Chopra, secretary, department of food and public distribution in the ministry of consumer affairs, food and public distribution.

Nationally, there are 373 khandsari units (with total capacity of about 95,000 TCD) working in the country. Out of the total, 66 units have more than 500 TCD capacity. The total capacity of these units is about 55,200 TCD.

Out of these, 66 units have a capacity of more than 500 TCD. They will now be regulated under the order and these units will need to register on the digital National Single Window System (NSWS).

The units will have two months to register on NSWS. Various byproducts, like cane bagasse, molasses, press mud cake and ethanol, have been included in the control order.