India Sugar Federation proposes dual sugar pricing, policy reforms to support farmers and mills 

INDIA – National Federation of Cooperative Sugar Factories Limited has proposed major reforms aimed at strengthening India’s sugar sector, improving mill profitability and supporting millions of sugarcane farmers across the country. 

The proposals were discussed during a meeting held in Pune on Saturday, where representatives of the federation, led by president Harshvardhan Patil, reviewed the draft Sugarcane (Control) Order 2026 ahead of the May 20 submission deadline. 

One of the key recommendations is the introduction of a dual pricing system for sugar, which would establish separate prices for commercial buyers and household consumers. 

Currently, sugar is sold at a uniform rate regardless of whether it is purchased by households or industrial users such as beverage manufacturers, bakeries and confectionery companies.  

The federation believes a two-tier pricing structure would help sugar mills improve revenues while maintaining price stability for domestic consumers. 

The draft policy also proposes restricting the establishment of new sugar mills within a 25-kilometre radius of existing facilities. While the rule is already implemented in Maharashtra, the proposal seeks to extend the restriction to other sugar-producing states across India. 

Federation representatives supported the proposal, saying it would help prevent unhealthy competition and improve operational sustainability for existing mills. 

Highlighting the significance of the sector, Patil said the proposed reforms are intended to benefit both the sugar industry and approximately 5.5 crore sugarcane farmers nationwide. 

India’s annual sugar demand currently stands at around 280 lakh tonnes. According to industry representatives, nearly 60 percent of sugar consumption comes from commercial users, while household consumption accounts for the remaining share. 

The federation has also proposed reducing the interest rate charged on delayed Fair and Remunerative Price (FRP) payments to farmers from 15 percent to 12 percent annually. Under existing regulations, mills are required to pay farmers within two weeks of harvesting sugarcane. 

In addition, NFCSF recommended linking sugar and ethanol prices directly with the FRP mechanism to ensure fair farmer compensation and improve the financial stability of sugar mills. 

The federation also called for long-term policy consistency, urging the Indian government to maintain a stable regulatory framework for at least 10 years to support industry growth and improve global competitiveness. 

Meanwhile, Shri Sant Tukaram Cooperative Sugar Factory has introduced artificial intelligence and drone technology into sugarcane cultivation for the 2025–26 season. 

The initiative, implemented in partnership with Krishi Vigyan Kendra Baramati and Vasantdada Sugar Institute, has already deployed drone-based spraying across nearly 230 acres in several villages. 

Executive Director S.G. Pathare said the technology is expected to reduce pesticide usage by 30 to 40 percent while increasing crop yields by 35 to 40 percent. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.