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Core Purpose

The Central Government issues the Sugar (Control) Order, 2025 under the Essential Commodities Act, 1955, superseding previous sugar control orders.

Detailed Summary

The Ministry of Consumer Affairs, Food and Public Distribution (Department of Food and Public Distribution), acting under Section 3 of the Essential Commodities Act, 1955, has issued the Sugar (Control) Order, 2025, effective from May 1, 2025. This new order supersedes the Sugar (Control) Order, 1966 and the Sugar Price (Control) Order, 2018. The order defines various terms related to sugar, its by-products (like molasses, bagasse, press mud), different types of sugar (bura, cube, khandsari, plantation white, raw, refined, icing), and entities like bulk consumers, dealers, producers, khandsari factories, and sugar factories/mills. It specifies standards for khandsari sugar and cane molasses. The Central Government, and State Governments with Central approval, are granted powers to regulate the production, diversion (including for ethanol), sale, storage, disposal, movement, and minimum selling price of sugar and its by-products. The minimum selling price is to be determined considering sugarcane price, conversion cost, and by-product revenue. The order also empowers the Central Government to regulate the quality of sugar based on Indian Sugar Standard Grades, direct reprocessing or specific sale of sub-standard sugar, and references the role of the Food Safety and Standards Authority of India under the Food Safety and Standards Act, 2006 for food business operators. Extensive powers are provided for calling for information (including digital data sharing with government bodies), inspection, entry, search, sampling (referencing BIS and FSSAI procedures), and seizure of sugar stocks and associated conveyances, with search and seizure procedures aligning with the Bharatiya Nagarik Suraksha Sanhita, 2023. Producers, dealers, and others are required to comply with directions issued under this order, and the Central Government may delegate its powers to Central or State Government officers/authorities.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-02052025-262830 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 237] NEW DELHI, THURSDAY, MAY 1, 2025/VAISHAKH 11, 1947 MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (Department of Food and Public Distribution) ORDER New Delhi, the 1st May, 2025 G.S.R. 280(E). In exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955 (10 of 1955) and in supersession of the Sugar (Control) Order, 1966 and the Sugar Price (Control) Order, 2018, expect as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following order, namely: - 1. Short title, extent and commencement. – (1) This order may be called the Sugar (Control) Order, 2025. (2) It shall come into force on the date of its publication in the Official Gazette. 2. Definitions. – (1) In this order, unless the context otherwise requires, - (a) "Act" means the Essential Commodities Act, 1955 (10 of 1955); (b) "bulk consumer" means halwai, sweetmeat seller, confectioner, soft drink manufacturer, food processing industry or any other institutional buyer etc. consuming not less than one hundred metric tons of sugar as average monthly consumption during last one year excluding the current month; (c) "bura sugar" means the fine grain size product made out of any kind of sugar having sucrose not less than 90 per cent. by weight and moisture not more than 0.7 per cent. by weight and shall be free from dirt, filth, iron filings and added coloring matter and extraneous matter not more than 0.1 per cent. by weight or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (d) "by-products" means any form of product, which has been produced during production of sugar namely, cane bagasse, cane molasses, press mud cake or any other alternative product affecting sugar production from sugarcane; (e) "cane molasses” means cane molasses as provided under clause 4 of this order; (f) "cube sugar" means sugar in the form of cube or cuboid blocks manufactured from refined crystallised sugar having sucrose not less than 99.7 per cent. by weight and moisture not more than 0.25 per cent. by weight and total ash not more than 0.03 per cent. by weight, and it shall be white in colour, free from dirt and extraneous contamination or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (g) "dealer" means any person engaged in the business of purchase, movement, sale, supply, distribution, storage or processing of sugar, whether as a wholesaler or retailer or big chain retailer or processor or importer or exporter and whether or not in conjunction with any other business and includes his representatives or agent; (h) "ethanol" produced from sugar-based feed stocks, means ethanol produced from sugar cane juice, sugar syrup, cane molasses and sugar; (i) "food business" means any undertaking, whether for profit or not and whether public or private, carrying out any of the activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes food services, catering services, sale of food or food ingredients; (j) "food business operator", in relation to food business, means a person by whom the business is carried on or owned and is responsible for ensuring the compliance of the Food Safety and Standards Act, 2006 (34 of 2006) and the rules and regulations made thereunder; (k) "gur or jaggery" means the product obtained by boiling or processing juice pressed out of sugarcane having sucrose not less than 60 per cent. by weight, moisture not more than 10 per cent. by weight other than for liquid or semi liquid variety and ash insoluble in dilute hydrochloric acid not more than 0.5 per cent. by weight, and it shall be free from substances deleterious to health or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (1) "icing sugar" means the sugar manufactured by pulverising refined sugar or vacuum pan sugar with or without edible starch and edible starch, if added, shall be uniformly extended in the sugar and shall be white free from white powder, dust and other extraneous matter. It shall have sucrose not less than 99 per cent. by weight and moisture not more than 0.80 per cent. by weight and starch not more than 4 per cent. by weight or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (m) "Indian Sugar Standard Grades" means the grades represented by the standard sealed samples of sugar in bottles issued by the Director, National Sugar Institute, Kanpur, conforming to the standards prescribed by the Bureau of Indian Standards; (n) "khandsari factory" means any premises including the precincts thereof wherein twenty or more workers are working or were working and in any part of which any manufacturing process connected with the production of khandsari sugar by means of open pan process is being carried on or is ordinarily carried on with the aid of mechanical power and having crushing capacity not less than five hundred tones crushed per day; (o) "khandsari sugar" means khandsari sugar as provided under clause 3 of this order; (p) "plantation white sugar" means the crystallised product obtained from sugarcane or sugar beet having sucrose not less than 98 per cent. by weight and moisture not more than 0.5 per cent. by weight, and it shall be free from dirt, filth, iron filings and added coloring matter and extraneous matter not more than 0.1 per cent. by weight or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (q) "producer" means an entity or person carrying the business of manufacturing sugar or any product using sugarcane juice or sugar or cane molasses where sucrose or sugar is utilised and the resultant product is not meant for direct human or animal consumption; (r) "raw sugar" means unwashed, centrifugal sugar with a minimum polarisation of 96.5°Z, surrounded by the original film of molasses, derived from sugar cane or sugar beet, to be further refined or reprocessed for making it superior quality sugar or as specified by the Bureau of Indian Standards or Food Safety and Standards Authority of India, as amended from time to time; (s) "refined sugar" means the crystallised sugar having sucrose not less than 99.5 per cent. by weight and moisture not more than 0.5 per cent. by weight, and it shall be free from dirt, filth, iron filings and added coloring matter and extraneous matter not more than 0.1 per cent. by weight or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (t) "sugar" means, - (i) any form of sugar containing more than 90 per cent. of sucrose (polarisation), including raw, plantation white, refined sugar and sugar candy; or (ii) khandsari sugar or bura sugar or crushed sugar or any sugar in crystalline or powdered or liquid form; (u) "sugar factory or sugar mill” means any premises including the precincts thereof wherein twenty or more workers are working and in any part of which any manufacturing process connected with the production of sugar by means of vacuum pan process or production of ethanol either directly from sugarcane juice or syrup or sugar or khandsari sugar syrup is being carried on or is ordinarily carried on with the aid of mechanical power. (2) Words and expressions used herein and not defined but defined in the Act shall have the same meaning respectively as assigned to them in the Act. 3. Standard of khandsari sugar desi or sulphur. - The khandsari sugar obtained from sugarcane juice by open pan process may be of two varieties and it may be crystalline or in powder form. It shall be free from dirt, filth, iron filings and added colouring matter and the extraneous matter shall not exceed 0.25 per cent. by weight and it may contain sodium bicarbonate (food grade). The two varieties shall also confirm the following standards, namely: - (a) Khandsari sugar (Desi) - Sucrose not less than 93 per cent. by weight and moisture not more than 1.5 per cent. by weight and ash insoluble in dilute hydrochloric acid not more than 0.7 per cent. by weight or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time; (b) Khandsari sugar (Sulphur) - Sucrose not less than 96.5 per cent. by weight and moisture not more than 1.5 per cent. by weight and ash insoluble in dilute hydrochloric acid not more than 0.5 per cent. by weight or as specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, as amended from time to time. 4. Cane molasses. - Cane molasses shall be the mother liquor generated during the production of sugar in sugar factory or khandsari factory, which is having following sub-types, namely: - (i) A-Heavy molasses: A-Heavy molasses is an-intermediate by-product produced during production of sugar having purity of 66 per cent. and above; (ii) B-Heavy molasses: B-Heavy Molasses is an-intermediate by-product produced during production of sugar having purity equal to or greater than 48 per cent. and less than 66 per cent.; and (iii) C-Heavy molasses: C-Heavy molasses is a final by-product produced during production of sugar having purity of molasses less than 48 per cent. 5. Power to regulate production and diversion of sugar. – (1) The Central Government or the State Government with approval of the Central Government, direct that no sugar and its by-products shall be manufactured from sugarcane or sugar beet except under and in accordance with the conditions specified in the Industrial Entrepreneur Memorandum issued in this behalf. (2) The Central Government or the State Government with approval of the Central Government may, issue orders to regulate diversion of sugar for production of ethanol from sugar-based feedstock or any other product, which involves diversion of sugar. 6. Power to regulate sale, storage, disposal etc. of sugar by producer. -The Central Government may, direct that no producer shall sell or agree to sell or otherwise dispose of, or deliver any kind of sugar or remove any kind of sugar from the producers' premises except under and in accordance with a direction issued in writing by the Central Government: Provided that this clause shall not affect the pledging of such sugar by any producer or dealer in favour of any scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934) or any of corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or any Non-Banking Financial Companies as licensed by the Reserve Bank of India and no such bank or financial institution shall sell the sugar pledged to it except under and in accordance with a direction issued in writing by the Central Government. 7. Power to issue directions to producers and dealers. The Central Government may, from time to time, by general or special order, issue to any producer or dealer or any class of producers or dealers, such directions regarding the production, maintenance of stocks, storage, sale, grading, packaging, marking, weighment, disposal, delivery, minimum price of sugar for sale, distribution or processing of any kind of sugar and its by-products, as it may deem fit. 8. Sugar attached by the Central Government or by the State Government not to be sold without direction. (1) Where any stock of sugar with any producer or dealer is attached or seized,- (i) by any officer of the Central or a State Government in accordance with the provisions of any enactment for the time being in force; or (ii) in pursuance of any proceedings in civil court. (2) The sugar so attached or seized shall not be ordered to be sold unless the officer or Court is satisfied that directions have been issued by the Central Government under clause 7 of this order: Provided that stock of sugar, seized by the Government officials shall be released for sale on production of bank guarantee of equivalent value of the stock so seized, until the disposal of the case. 9. Power to regulate minimum selling price of sugar.- The Central Government shall, at the time of issuing any order regarding minimum selling price of sugar for sale under clause 7, take into consideration the fair and remunerative price of sugarcane, approximately and average conversion cost and such other financial cost as may be relevant for production of sugar from sugarcane or beetroot, or as the case may be, average revenue realisation from primary by-products (molasses, bagasses and press mud) generated in the process of sugar production. 10. Power to regulate movement of sugar. -The Central Government may, direct that no person shall transport or offer or accept for transport by any means of transport, sugar, except under- (a) a general or special permit issued in this behalf; and (b) a military credit note. 11. Power to regulate quality of sugar and its by-products. – (1) The Central Government may, prescribe the quality of sugar in terms of Indian Sugar Standard Grades to which all or any kind of sugar shall conform at the time of delivery in pursuance of the directions issued to a producer or a class of producers under clause (f) of sub-section (2) of section 5 of the Essential Commodities Act, 1955 or clause 7 of this order. (2) When the Central Government is of the opinion that any stock of sugar with any producer is below any of the Indian Sugar Standard Grades of sugar, it may direct the producer to reprocess the said stock with a view to conform to one or more of the Indian Sugar Standard Grades of sugar or to sell it only to bulk consumers for use in the manufacture of their products. (3) The Food Safety and Standards Authority of India shall regulate food business operators on matters related to safety and quality aspects in accordance with the provisions of the Food Safety and Standards Act, 2006 (34 of 2006) and the rules and regulations made thereunder. 12. Power to call for information, etc. The Central Government or any person authorised in this behalf by the Central Government may, with a view to secure compliance with this order or to satisfy itself that any order or direction issued under this order is complied with, require any producer or dealer to furnish within such period or at such intervals as may be specified, such information, returns or reports and in such forms including digital forms through Application Programing Interface or any other mode and to allow information sharing with any Government Organisation to ensure authenticity of data and compliance, as may be required; and the data shall not be shared with any third party and shall be exclusively used for Government purposes. 13. Power of inspection, entry, search, sampling, seizure, etc. –(1) Any officer authorised by the Central Government in this behalf, may,- (a) direct any producer or dealer to maintain such records as he may specify; (b) direct any producer or dealer to furnish such information as he may require; (c) inspect or authorise any person to inspect any books or any documents or stocks of sugar belonging to or under the control of a producer or dealer; (d) enter and search or authorise any person to enter and search,- (i) any place where sugar is manufactured including the machinery installed therein; or (ii) any place in which there is reason to believe that sugar is stored in contravention of this order. (e) draw or authorise any person to draw, in accordance with the procedure prescribed in clause 14, samples for examination, - (i) from any stock of sugar belonging to, or under the control of a producer or dealer; (ii) from any consignment of sugar in the course of its delivery or dispatch by a producer; (f) stop and search or authorise any person to stop and search, - (i) any person transporting sugar; or (ii) any vehicle, vessel or other conveyance used or capable of being used for the transport of sugar in contravention of this order; (g) seize or authorise the seizure of any sugar in respect of which he has reason to believe that an act in contravention of this order has been, is being or is about to be, committed, along with the packages, coverings or receptacles in which sugar is found or the animals, vehicles, vessels, or other conveyance used in carrying such sugar and thereafter take or authorise the taking of all measures necessary for securing the production of such packages, coverings, receptacles, animals, vehicles, vessels or other conveyances in a Court and for their safe custody pending such production. (2) The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) with respect to search and seizure shall, apply to searches and seizures under this clause. 14. Procedure for drawing samples. – (1) Subject to the provisions of sub-clause (e) of clause 13, the procedure to draw sample will be as specified in IS 14818:2017 (as updated) issued by the Bureau of Indian Standards or Food Safety and Standards Authority of India, as may be applicable. (2) The provisions of the Food Safety and Standards Rules, 2011 and the Food Safety and Standards (Laboratory and Sample Analysis) Regulations, 2011, shall apply for taking sample and manner of sending of sampling and analysis. 15. Compliance of orders. – Every producer or dealer or other person to whom any order or direction is issued under any powers conferred by or under this order, shall comply with such order or direction. 16. Delegation of powers. – The Central Government may, by notification in the Official Gazette, direct that all or any powers conferred upon it by this order shall, subject to such restriction, exceptions and conditions, if any, as may be specified in the direction, be exercisable also by- (a) any officer or authority of the Central Government; (b) any other or authority of a State Government. [F. No. 2(1)/2013-SP-I] ASWANI SRIVASTAVA, Jt. Secy.

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