{"id":21564,"date":"2026-04-24T08:29:15","date_gmt":"2026-04-24T02:59:15","guid":{"rendered":"https:\/\/edunovations.com\/courses2\/new-sugar-policy-india-25-km-sugar-mill-distance-rule-under-sugarcane-control-order-2026-explained\/"},"modified":"2026-04-24T08:29:15","modified_gmt":"2026-04-24T02:59:15","slug":"new-sugar-policy-india-25-km-sugar-mill-distance-rule-under-sugarcane-control-order-2026-explained","status":"publish","type":"post","link":"https:\/\/edunovations.com\/courses2\/new-sugar-policy-india-25-km-sugar-mill-distance-rule-under-sugarcane-control-order-2026-explained\/","title":{"rendered":"New Sugar Policy India: 25 km Sugar Mill Distance Rule Under Sugarcane Control Order 2026 Explained"},"content":{"rendered":"

New Sugar Policy India introduces 25 km sugar mill distance rule under Sugarcane Control Order 2026, aiming to improve industry structure, boost ethanol production, and support farmers\u2019 income security for competitive exams.<\/strong><\/h2>\n

Introduction: Major Policy Shift in Sugar Industry<\/h3>\n

The Government of India has proposed a significant overhaul in the sugar sector through the draft Sugarcane (Control) Order 2026<\/strong>, introducing a key reform of maintaining a 25 km minimum distance between sugar mills<\/strong>. This move aims to reduce unhealthy competition among mills, improve cane availability, and ensure fair pricing for farmers. The policy is expected to reshape the structural framework of India\u2019s sugar industry, which is one of the largest in the world.<\/p>\n

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\ud83d\udccc 25 KM Distance Rule: Structural Reform in Mill Licensing<\/h3>\n

One of the most important features of the proposed policy is the increase in the minimum distance between two sugar mills from 15 km to 25 km<\/strong>. This reform is intended to prevent overcrowding of mills in cane-rich regions, especially in states like Uttar Pradesh and Maharashtra. By limiting proximity, the government seeks to ensure stable raw material supply for each mill and reduce competition for sugarcane procurement.<\/p>\n

According to the draft, this rule will also help in improving operational efficiency and reducing financial stress on mills that often face cane shortages due to over-concentration of factories in a single region.<\/p>\n

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\ud83d\udccc Inclusion of Ethanol and Khandsari Sector<\/h3>\n

The new policy also expands regulatory coverage to include ethanol production and khandsari sugar units<\/strong>. Mills producing ethanol from sugarcane juice and by-products will have their output linked to sugar equivalent calculations. This aligns sugar production with India\u2019s growing biofuel economy<\/strong>.<\/p>\n

Additionally, khandsari units will now come under stricter licensing and compliance norms, ensuring better transparency and standardisation in the sugar ecosystem.<\/p>\n

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\ud83d\udccc Objective of the Policy Reform<\/h3>\n

The main objectives of this reform include:<\/p>\n