New Era in Sugarcane Regulation: Ethanol Integration Takes Center Stage

The Centre is set to revolutionize sugarcane regulation with its proposed Sugarcane (Control) Order 2026. This draft seeks to integrate ethanol production and digital compliance into a single regulatory framework, replacing the outdated 1966 Sugarcane Control Order.

Core principles from the old law, such as Fair and Remunerative Price rules and payment deadlines, are retained. Notably, the new regulation explicitly incorporates ethanol in definitions and calculations, potentially transforming industry operations. The draft also introduces a structured approval process for new factories and seeks industry feedback by the specified deadline.

Industry representatives are cautiously examining the changes. Prakash Naiknavare and Praful Vithalani, key stakeholders, are assessing the implications for the sugar and ethanol sectors, highlighting stricter oversight and potential impacts on khandsari units and standalone ethanol facilities.

(With inputs from agencies.)