Government Shelves Sugarcane Regulation Plan After Farmer Opposition

India revokes the proposed Sugarcane (Control) Order, 2026. The decision came after pushback from state authorities, farmers, and khandsari operators, who expressed concerns over its impact on small, labor-intensive units. The order aimed to update a 60-year-old framework by including the ethanol and khandsari sectors.

The Indian government has retracted the proposed Sugarcane (Control) Order, 2026, following resistance from state authorities, farmers, and operators of khandsari units. The draft document, made public for feedback with a deadline of May 20, will be reassessed, as confirmed by a Food Ministry memorandum.

Designed to replace the longstanding Sugarcane (Control) Order of 1966, the new regulations aimed to subject ethanol and khandsari sectors to governmental oversight. A redefined khandsari unit classification threatened to incorporate many small-scale, labor-heavy units into regulation, prompting fears of negative economic impacts on farmers who favor khandsari units over sugar mills for better prices.

BJP representative Sanjeev Balyan cited this withdrawal as evidence of Prime Minister Narendra Modi's farmer-first policy orientation. Opposition from significant stakeholders highlighted the need for an inclusive policy-making process that aligns with the welfare of the agricultural community.