Archive · 7 Nov 2025
India's Khandsari Sugar Control Order Implementation Faces Delays
A new rule was made in India for large makers of a special sugar called 'khandsari'.
They now need to tell the government how much they make and sell, just like bigger sugar factories.
They also have to buy sugarcane at a price set by the government.
But, these khandsari makers say they can't afford the same sugarcane price as the big factories because they get less juice from the sugarcane.
So, they asked for a different price, and the government is looking into it.
The government is also not rushing to strictly enforce the new rules yet, giving the khandsari makers time to get used to them.
For now, they can still sell their sugar without monthly limits.
The main idea behind the new rule is to keep track of all the khandsari sugar made and sold and to make things fairer for everyone.
India amended the Sugar (Control) Order in May to include khandsari sugar, requiring large units (over 500 TCD) to register and share production/sales data.
Registration has been slow due to issues like parity in sugarcane prices and realization between khandsari units and sugar mills.
Khandsari units with 500 TCD+ capacity must register on the National Single Window System and buy sugarcane at government-set prices.
The government is examining khandsari units' request for a separate fair and remunerative price (FRP) for sugarcane due to lower juice recovery.
The monthly stock holding limit for domestic sales is currently not applicable to khandsari sugar factories, allowing them to sell freely in the open market.
- Who
- Large khandsari sugar units (over 500 TCD capacity) and the Indian government.
- What
- Implementation of an amended Sugar (Control) Order that includes khandsari sugar under the definition of sugar, requiring registration and data sharing.
- When
- The order was amended in May; registration has been slow, and sugarcane crushing began a few days before November 7, 2025.
- Where
- India, with a significant number of units located in Uttar Pradesh.
- Why
- To regulate khandsari sugar production and sales, ensure fair pricing, and prevent misleading marketing practices.
Khandsari Unit Owners
Government
Sugarcane Price Parity
Khandsari Unit Owners
Khandsari units argue for a separate, lower sugarcane price due to lower juice recovery compared to sugar mills.
Government
The government is examining the demand for a separate fair and remunerative price (FRP) for khandsari units, and the CACP needs three years of statistics to recommend a separate price.
Registration and Compliance
Khandsari Unit Owners
Some units are hesitant to register due to new compliance requirements and non-parity with sugar mills.
Government
The government is not keen on immediate strict enforcement, recognizing the need for time for factories to adjust to new regulations, but registration is essential for data collection.
- Amended Order Date
- May (Year Not Specified)
- Definition of Sugar
- Any form of sugar containing more than 90% sucrose, including raw, refined, sugar candy, khandsari, bura, crushed sugar in crystalline, powdered, or liquid form.
- Number of Khandsari Units
- Over 370
- Total Khandsari Capacity
- Approx. 95,000 tonnes cane crushed per day (TCD)
- Units Covered by Order
- Khandsari units with 500 TCD or more capacity
- Registration Platform
- National Single Window System (NSWS)
- Monthly Stock Holding Limit
- Not applicable to khandsari units as of now