The proposed Sugarcane (Control) Order, 2026 has been withdrawn by the Center due to concerns raised by state governments and other interested parties.In an office note, the ministry stated, "It is deemed necessary to revisit the draft Sugarcane (Control) Order, 2026 based on the suggestions/comments received from state governments and other stakeholders."
The plan aimed to replace the 60-year-old Sugarcane (Control) Order, 1966 with a new regulatory framework that suggested, among other things, regulating the ethanol and khandsari industries.Farmers and Khandsari units opposed the action. According to the draft, a khandsari unit should be defined as having more than ten employees and a daily crushing capacity of more than 500 tonnes. A khandsari unit is defined by the current regulations as one that employs 20 or more people, with no cap on capacity.
According to sources, the proposed definition would have negatively impacted farmers who often receive higher prices from khandsari units than from sugar mills by bringing a significant number of labour-intensive, small-scale businesses under the regulatory purview.
Sanjeev Balyan, a BJP MP for Muzaffarnagar, Uttar Pradesh, stated on social media that the administration had chosen to revoke the directive "in the interest of farmers."

"This demonstrates that under the leadership of Prime Minister Narendra Modi, the government formulates every policy by placing the consent of the farmers and their welfare above all," he stated.