60 year old rules related to production, storage and price of sugar will change, government is reviewing it

Sugar Reu 1724433937

The Food Ministry is working on a plan to bring the nearly six-decade-old regulation related to the production, storage, and pricing of sugar in line with the advances in technology. In this regard, the Ministry of Consumer Affairs, Food and Public Distribution has released the draft ‘Sugar (Control) Order, 2024’. The ministry has proposed to review the Sugar (Control) Order 1966 due to technological advances in the production process.

rules need to be amended

Releasing the draft, the ministry said, “There have been many changes in the sugar sector, which has necessitated amendments to the existing Sugar (Control) Order, 1966.” The draft order empowers the government to regulate the production of sugar as well as restrict its sale, storage, and disposal by producers and dealers. The ministry has invited comments from stakeholders on the draft by September 23.

What was said in the draft?

Regarding the power to regulate the price of sugar, the draft said, “The Central Government, while issuing any order regarding the price of sugar for sale, shall take into account the fair and remunerative price (FRP) of sugarcane, the estimated and average conversion cost for the production of sugar from sugarcane, the average revenue realization from by-products generated in the process of sugar production.” The draft said that the Central Government or the State Government can issue an order that sugar and its by-products should be manufactured from sugarcane only by the conditions specified in the license issued to the producer. It also specifies the power of the Central Government to restrict the sale, storage, and disposal of sugar by producers and dealers.