Informist, Monday, Aug 26, 2024

--Sugar co-op MD:Industry to deliberate new Sugar Control Order Sep 14

By Afra Abubacker

NEW DELHI - The National Federation of Cooperative Sugar Factories will spearhead an industry meet on Sep 14 in Pune to review the recently issued draft amendment of Sugar (Control) Order 2024. "We will prepare a common draft after deliberating with all industry pan-India on Sep 14 in Pune," Prakash Naiknavare, the managing director of the federation, told Informist.

On Thursday, the Department of Food and Public Distribution had issued a draft Sugar (Control) Order 2024, merging Sugar Control order 1966 and Sugar Price control order 2018. The draft proposed amending the regulations regarding production, sales, storage, and pricing of sugar and other sugarcane by-products. The draft proposes to replace the existing Sugar (Control) Order, 1966.

The industry will have detailed discussions on each clause and submit a "common single memorandum from the industry" to the government. The draft amendment has 15 clauses and the last date to submit comments and suggestions is Sep 23.

Asked for comments on the draft, Naiknavare said that it's an "important order" that requires a thorough examination.

The draft amendment calls for increased compliance in data disclosure. It also has issued stricter quality standards to improve accountability. The government has been pushing sugar mills to digitise their operations and bring transparency in the sector.

"...all sugar mills should have an ERP (Enterprise Resource Planning) software. With that, your system will have transparency and efficiency. Human error will be reduced," Sangeet Singla, director (sugar), had said on Aug 10. The software manages all details of making sugar from harvesting, cane procurement, pricing, transporting, billing, budgeting, and cane inventory management, among others.

Apart from sugar, the draft proposal has extended regulations on other by-products like molasses-based ethanol, compressed biogas, and press-mud.

On sugar pricing, the draft seeks to also include revenue realisation of other by-products. Previously, sugar prices majorly took cues from the fair and remunerative price of sugarcane, which is set by the government.

The federation will write to major industry association heads on Tuesday about the September meeting, Naiknavare said. End

Edited by Akul Nishant Akhoury

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