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Government appoints panel to review sugarcane prices and sugar mill practices

Public and Policy Editorial DeskUpdated 14 Oct 20263 min readSource: PIBHow we report

The Government of India has formed a committee to investigate complaints from sugarcane farmers and recommend solutions to their grievances. The Ministry of Consumer Affairs, Food and Public Distribution announced the decision following meetings between farm representatives from Karnataka and Maharashtra with the Union Ministers of Agriculture and Consumer Affairs.

The committee, chaired by Prof. Ramesh Chand, a former member of NITI Aayog, will examine multiple aspects of the sugarcane and sugar sector that have become sources of farmer discontent.

Key facts

  • Committee chairman: Prof. Ramesh Chand, former Member of NITI Aayog (2015 to 2026)
  • Announcing ministry: Ministry of Consumer Affairs, Food and Public Distribution
  • Committee members: Agriculture Commissioner (Ministry of Agriculture and Farmers Welfare), Joint Secretary (Sugar) from Department of Food and Public Distribution, and Joint Secretary (Legal Metrology) from Department of Consumer Affairs
  • States involved in farmer representation: Karnataka and Maharashtra
  • Timeline: Committee to submit report as early as possible

What the committee will examine

The committee has been given a wide remit covering farmer income, mill operations and government pricing decisions. It will investigate demands from sugarcane cultivators for better returns by looking at production costs and other economic factors that affect farm viability.

One major focus is the Minimum Selling Price (MSP) of sugar set by the government. The panel will review whether the current ex-mill MSP remains fair when measured against the actual cost of producing sugar, what mills can realistically sell sugar for in the market, and whether mills can remain financially healthy under present pricing.

The committee will also scrutinise how sugar recovery is currently tested, measured and reported. It will look for ways to make this process more transparent and reliable. Weighment of sugarcane at mills is another area under review, including whether scales are properly calibrated, regularly inspected and verified to ensure accuracy.

Mechanised harvesting of sugarcane brings additional concerns. The panel will examine the practice of deductions applied to the weight of machine-harvested cane, establish what actual losses genuinely occur from mechanical harvesting, and calculate the financial impact these deductions have on the final payment farmers receive for their crop.

Consultation process

The committee will seek input from all stakeholders involved in the sugarcane supply chain. This includes organisations representing sugarcane farmers, associations of sugar mills, State Governments, and any other experts or organisations it deems necessary to consult. This broad engagement approach is meant to ensure the committee gathers evidence from multiple perspectives before forming recommendations.

Background of the committee chairman

Prof. Ramesh Chand is an agricultural economist and public policy specialist with decades of experience in government service. He served as a Member of NITI Aayog, India’s main policy think tank, from 2015 until 2026. Before that, he held the position of Director at ICAR-NIAP, an agricultural research institute, and was a Member of the Fifteenth Finance Commission. His expertise spans agricultural development, farmer welfare, food security, how agricultural markets operate, and how governments set prices for farm products.

What this means for you

If you are a sugarcane farmer in India, particularly in Karnataka or Maharashtra, this committee’s work could lead to higher prices for your cane or improved payment practices at sugar mills. The examination of weighment practices and mechanised harvesting deductions may result in fairer calculations of what you are paid.

If you own or manage a sugar mill, the review of MSP and mill financial viability could affect the prices you pay for cane and the prices at which you can sell sugar. State governments may also see policy changes affecting how they regulate the sector.

For consumers, the outcome could influence sugar prices in the market, since changes to farmer payments or mill MSP could ripple through to retail pricing.

What happens next

The committee will conduct its investigation and consultations over the coming months. It will submit a report with its findings and specific recommendations to the competent authority for consideration. The government has not specified a deadline, only stating the report should come “as early as possible”.

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