India has officially banned sugar exports until September 2026, marking a significant shift from the previous restricted category to prohibited status. As reported by Viral Facts, this major policy move aims to control domestic prices and protect local supply amid concerns over lower production, weak sugarcane yields, and rising demand inside the country. Officials indicate the decision is designed to ensure sufficient sugar remains available for Indian consumers while avoiding sharp price increases. The export ban has already impacted global sugar markets, with international prices reportedly rising following the announcement.
The Centre's proposed amendments to the Sugarcane (Control) Order, 1966, have sparked significant opposition from farmer groups in Uttar Pradesh, one of India's largest sugar-producing states. According to reports from Business Standard, the amendments were floated last month and remain open for public comments until May 20. Farmer groups are particularly concerned about provisions related to gur and khandsari units, which consume 15-25% of India's total sugarcane production annually. These traditional, unrefined sugar products are largely produced by small, micro enterprises often operated by cane farmers themselves or local entrepreneurs.
As reported by Business Standard, the draft provisions make it mandatory for gur and khandsari units to pay the Fair and Remunerative Price (FRP) to farmers, while discouraging payments above rates paid by neighbouring sugar mills. The Bhartiya Kisan Union (Apolitical) has argued that all crushers and traditional kolhus should be classified under a single category, as modern kolhus now use advanced rollers comparable to or larger than those used in khandsari units. Farmer groups also criticized the FRP mechanism, which is largely based on sugar recovery, arguing that sugar mills generate substantial additional income through ethanol production, compressed biogas, molasses, and bagasse-based electricity generation.
According to Business Standard reports, UP's 10-12 major sugarcane-growing districts account for the bulk of gur and khandsari units, with 2,000-3,000 such manufacturing units in each major sugarcane-growing district. These units are concentrated in Meerut, Muzaffarnagar, Baghpat, Saharanpur, Bijnore, Amroha, and Bareilly. The farmer groups argue that while bringing khandsari units and crushers under the FRP framework, the government should simultaneously establish a minimum selling price (MSP) for jaggery, shakkar and khandsari products similar to sugar pricing.
As reported by Business Standard, farmer groups have formally opposed the draft provisions through meetings with Union Minister Jayant Chaudhary, who draws political support from western Uttar Pradesh's sugarcane belt. The Yogi Adityanath government earlier announced a ₹30 per quintal increase in State Advised Price (SAP) for sugarcane for the 2025-26 season, taking procurement prices to ₹400 per quintal for early-maturing varieties and ₹390 per quintal for common varieties. This follows the 2020 farmers' agitation, during which the BJP worked to consolidate its position in the agrarian belt with RLD support.
According to Business Standard reports, the National Federation of Cooperative Sugar Factories (NFCSF) is likely to propose adopting the Gujarat Model of Cane Payment System across the country. Under this system, the first instalment is paid based on previous year sugar recovery, the second on current year recovery at crushing season close, and the last on final season recovery. The cooperative sugar factories are also expected to retain provisions for interest on delayed payments at 15% for delays beyond 14 days. The NFCSF suggests that sugar mills with capacity below 5,000 tonnes per day may be permitted liberal expansion without strict enforcement of distance criteria parameters.
