Ministry of Consumer Affairs, Food and Public Distribution Department of Food and Public Distribution

Sugarcane Control Order Amendment 2025

Issue Date: 16 October 2025 Published: 16 October 2025

Gazette ID: CG-DL-E-16102025-266975 Download PDF

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Core Purpose

The Central Government amends the Sugarcane (Control) Order, 1966, by inserting a new clause 6F to provide for the reinstatement of derecognised Industrial Entrepreneur Memoranda.

Detailed Summary

The Ministry of Consumer Affairs, Food and Public Distribution (Department of Food and Public Distribution), through S.O. 4688(E) dated October 16, 2025, issued an Order in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955). This Order, called the Sugarcane (Control) Amendment Order, 2025, further amends the Sugarcane (Control) Order, 1966, by inserting a new clause 6F after clause 6(E). Clause 6F establishes provisions for the reinstatement of derecognised Industrial Entrepreneur Memoranda (IEMs). Reinstatement involves a one-time, case-to-case review, subject to conditions such as furnishing a fresh performance guarantee (as per sub-clause (2) of clause 6B) if the original is forfeited or expired. For regularisation of an expired IEM period beyond seven years (as per item (c) of sub-clause 2 of clause 6C), an additional bank guarantee of rupees fifty lakh per year is required, and the COVID-19 period relaxation from March 1, 2020, to February 28, 2022, continues to apply. The validity of a reinstated IEM can be extended for implementation, subject to an additional bank guarantee of rupees fifty lakh per year sought. The Order permits a maximum two-year extension (one year at a time) for completing effective steps (Explanation 4 to clause 6A) and a further maximum two-year extension (one year at a time) for commencing commercial production, with no further extensions beyond these limits. Applications may be rejected if evidence is insufficient. Reinstated IEM holders must adhere to all provisions of the Order, including minimum distance requirements under clause 6A, unless modified in the reinstatement order. Extensions for effective steps or commercial production of sugar may be granted in consultation with the concerned State Government and the Department of Legal Affairs in the Ministry of Law and Justice. The Order specifies that the rupees fifty lakh bank guarantee furnished for an extension will be forfeited if commercial production does not commence within that extended year, and the bank guarantee furnished under sub-clause (2) of clause 6B will also be forfeited if commercial production does not commence within any such extended period. The principal Sugarcane (Control) Order, 1966, was originally published vide G.S.R. 1126/Ess.Com./Sugarcane, dated July 16, 1966, and last amended vide S.O. 4646(E), dated September 30, 2022.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-16102025-266975 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 4559] NEW DELHI, THURSDAY, OCTOBER 16, 2025/ASVINA 24, 1947 MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (Department of Food and Public Distribution) ORDER New Delhi, the 16th October, 2025 S.O. 4688(E).— In exercise of the powers conferred by section 3 of the Essential Commodities Act,1955 (10 of 1955), the Central Government hereby makes the following Order further to amend the Sugarcane (Control) Order, 1966, namely: - 1. (1) This Order may be called the Sugarcane (Control) Amendment Order, 2025. (2) It shall come into force on the date of its publication in the Official Gazette. 2. In the Sugarcane (Control) Order, 1966, after clause 6 (E), the following clause shall be inserted namely:- “6F. Reinstatement of Derecognised Industrial Entrepreneur Memorandum:- (1) Upon receipt of the application of reinstatement of derecognised Industrial Entrepreneur Memorandum, one time review shall be considered on case-to-case basis, as per the following conditions:- (i) reinstate the Industrial Entrepreneur Memorandum with or without additional conditions, including the submission of a fresh performance guarantee as specified in sub-clause (2) of clause 6B, if the original guarantee has been forfeited or expired; (ii) for regularisation of the expired period of Industrial Entrepreneur Memorandum beyond seven years, as per item (c) of sub-clause 2 of clause 6C, additional bank guarantee of rupees fifty lakh per year to be submitted by the project proponent and relaxation of COVID-19 period granted from 1st day of March, 2020 to 28th February, 2022 shall continue to apply; (iii) extend the validity of reinstated Industrial Entrepreneur Memorandum for its implementation, as deemed fit, subject to furnishing of a bank guarantee of rupees fifty lakh for each year for which the extension is sought, which shall be in addition to the bank guarantee furnished under sub-clause (2) of clause 6B: Provided that the validity period of the reinstated Industrial Entrepreneur Memorandum may be extended after regularisation for a maximum of two years, not exceeding one year at a time, for completion of the effective steps as specified in Explanation 4 to clause 6A and further extension beyond this period shall be permissible only upon completion of the effective steps; (iv) upon the expiry of the period specified in clause (iii), a maximum period of two years extension, not exceeding one year at a time, for commencement of commercial production shall be allowed and there shall be no further extension beyond this limit; and (v) reject the application, if the evidence provided by the project proponent is deemed insufficient or the circumstances do not justify reinstatement. (2) Where the Industrial Entrepreneur Memorandum is reinstated under this clause, the concerned person shall be required to adhere to all provisions of this Order, including the minimum distance requirements under clause 6A, unless modified in the reinstatement order: Provided that such extension may be granted for taking effective steps or for the commencement of commercial production of sugar, in consultation with the State Government concerned and the Department of Legal Affairs in the Ministry of Law and Justice, if considered necessary: Provided further that in case the commercial production does not commence within any such extended period of one year, such bank guarantee of rupees fifty lakh so furnished for that extension shall be forfeited and if commercial production does not commence within any of such extended period, the bank guarantee furnished under sub-clause (2) of clause 6B shall also be forfeited." [F. No. 3(3)/2018-SP-I] ASWANI SRIVASTAVA, Jt. Secy. Note: The principal Order was published in the Gazette of India, Extraordinary, vide number G.S.R. 1126/ Ess.Com./Sugarcane, dated the 16th July, 1966 and was lastly amended vide number S.O. 4646(E), dated the 30th September, 2022. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SARVESH KUMAR SRIVASTAVA KUMA MAR SRIVASTAVA Date: 2025.10.16 21:53:38 +0530

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