Amid stagnant or a falling sugar consumption in India, the Indian government has proposed to increase the distance between two sugar mills to 25 km from current 15 km if anyone wishes to set up a new sugar factory. Besides, it has been proposed that the state government will take a call if any existing plant wants to increase its sugar production capacity.
The draft Sugarcane (Control) Order 2026 has been published online by the Union Food Ministry on Tuesday for public feedback by May 20, 2026.
“Notwithstanding anything contained in clause 6, no new sugar factory shall be set up within the radius of 25 km of any existing sugar factory or another new sugar factory in a State or two or more States; provided that the State Government may with the prior approval of the Union Government, where it considers necessary and expedient in public interest, notify such minimum distance higher than 25 Km or different minimum distances not less than 25 km for different regions in their respective States,” the draft Order said.
