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Sugar rules revamp aims to boost role of ethanol, states

Hindustan Times Bengaluru

|

April 23, 2026

The Union governmentis finalising a sweeping overhaul of regulations for the sugar sector, expanding the framework to cover ethanol production, devolving more powers to states, and revising longstanding rules governing mill operations in the world’s second-largest sugar producer.

- Zia Haq

Sugar rules revamp aims to boost role of ethanol, states

The draft order increases distance between two mills from 15km to 25km.

The food ministry's draft Sugarcane (Control) Order, 2026 proposes increasing the mandatory distance between two mills, known as the command area, from 15 km to 25 km. The rule is aimed at preventing mills from sourcing cane outside designated zonesand competing for farmers’ produce.

While Maharashtra, Punjab and Haryana already follow the 25-km norm, major producers such as Uttar Pradesh and Karnataka currently do not. The change has beena longstanding industry demand, reflecting shifts in cropping patterns.

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The Union governmentis finalising a sweeping overhaul of regulations for the sugar sector, expanding the framework to cover ethanol production, devolving more powers to states, and revising longstanding rules governing mill operations in the world’s second-largest sugar producer.

time to read

2 mins

April 23, 2026

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