The Ministry of Consumer Affairs, Food and Public Distribution has issued a new order, the Sugar (Control) Order, 2025, effective from its publication date of May 1, 2025. This order, released by the Department of Food and Public Distribution, supersedes the long-standing Sugar (Control) Order, 1966, and the more recent Sugar Price (Control) Order, 2018.
The Central Government aims to establish a modern and unified regulatory structure for the production, sale, storage, movement, and quality control of sugar and its by-products. The order outlines a detailed set of definitions, standards, and powers vested in the Central and State Governments to manage the sugar sector.
Key Highlights of the Sugar (Control) Order, 2025
The new order explicitly replaces the 1966 and 2018 orders, bringing all regulations under a single umbrella. This is expected to streamline compliance and reduce ambiguity for stakeholders.
The order provides comprehensive definitions for various types of sugar, including plantation white, refined, raw, khandsari, bura, cube, and icing sugar. It also defines “bulk consumer,” “dealer,” “producer,” and different grades of “cane molasses,” ensuring clarity across the supply chain.
Specific quality standards are laid down for both Desi and Sulphur varieties of khandsari sugar, including sucrose and moisture content, as well as permissible levels of extraneous matter and ash.
The Central Government and State Governments (with Central approval) are empowered to regulate the production of sugar and its by-products, requiring adherence to conditions specified in the Industrial Entrepreneur Memorandum. The order also addresses the growing importance of ethanol production by allowing for the regulation of sugar diversion for this purpose.
Producers are now restricted from selling, agreeing to sell, disposing of, or removing any kind of sugar from their premises without written direction from the Central Government. An exception is made for the pledging of sugar to scheduled banks and Non-Banking Financial Companies licensed by the RBI, although even these institutions are subject to Central Government directions for the sale of pledged sugar.
The Central Government retains significant authority to issue general or special orders to producers and dealers regarding various aspects of the sugar business, including production, stock maintenance, storage, sale, grading, packaging, pricing, distribution, and processing.
When setting a minimum selling price for sugar, the Central Government is mandated to consider the fair and remunerative price of sugarcane, average conversion costs, other relevant financial costs, and average revenue from primary by-products like molasses, bagasse, and press mud.
The transportation of sugar is also brought under stricter regulation, requiring general or special permits and military credit notes for movement.
The Central Government can prescribe quality standards based on Indian Sugar Standard Grades. It also has the power to direct producers to reprocess substandard sugar or sell it only to bulk consumers for manufacturing purposes. The Food Safety and Standards Authority of India (FSSAI) will continue to regulate food business operators on safety and quality aspects under the Food Safety and Standards, 2006.
The order grants the Central Government and authorized personnel the power to call for information, returns, and reports from producers and dealers. It also allows for inspection of premises, books, documents, and sugar stocks, as well as the drawing of samples and seizure of sugar in case of contravention of the order. Procedures for search and seizure will align with the Bharatiya Nagarik Suraksha Sanhita, 2023.
The order specifies that sample collection will adhere to the standards set by the Bureau of Indian Standards (IS 14818:2017) or the FSSAI, as applicable, with further procedures governed by the Food Safety and Standards Rules, 2011, and related regulations.
The Central Government retains the option to delegate its powers under this order to officers or authorities of both the Central and State Governments.
The Sugar (Control) Order, 2025, is expected to have a wide-ranging impact on producers, dealers, bulk consumers, and other stakeholders in the sugar ecosystem.
