Centre sets up panel to study problems of sugarcane farmers
The Union Government on Tuesday, October 13, 2026, constituted a four-member committee headed by former NITI Aayog member Ramesh Chand to examine issues raised by sugarcane farmers and recommend “appropriate measures” to address their concerns. The move follows representations from farmer groups in Karnataka and Maharashtra, who have urged the Centre to ensure more remunerative returns for sugarcane cultivation.
Government constitutes four-member committee
Announcing the decision, the Union Ministry of Consumer Affairs, Food and Public Distribution said the committee will study key demands raised by farmers and assess them “taking into account cultivation costs and other relevant factors.” The panel will draw on inputs from a wide range of stakeholders and submit a set of actionable recommendations to the competent authority “as early as possible.”
Mandate and scope
According to a release issued by the Union Food Ministry, the committee’s brief includes examining the demand for revising the ex-mill Minimum Selling Price (MSP) of sugar. The review will be conducted “in the context of sugar production costs, market realisations, and the financial viability of sugar mills,” the statement said.
The panel will also look into the parameters that influence price-setting and returns to farmers, including the cost of cultivation and related economic factors that shape the sugarcane value chain.
Weighment and sugar recovery under scrutiny
Another core area of the review relates to how sugar recovery—the proportion of sugar obtained from cane—is tested, reported and verified. The ministry said the committee will examine “existing mechanisms for testing and reporting sugar recovery” and recommend “measures to ensure transparent verification of recovery.”
In addition, the panel will scrutinise “prevailing sugarcane weighment practices at sugar mills, including the adequacy of calibration, inspection and verification mechanisms.” These processes directly affect the quantity recorded at factory gates and, by extension, farmer payments linked to cane weight and recovery.
Mechanised harvesting deductions to be reviewed
With mechanised harvesting becoming more common in several sugarcane-growing regions, the government has tasked the committee with examining practices relating to deductions made from the weight of mechanically harvested cane. The panel will “assess the extent of actual losses, if any, arising from mechanised harvesting,” and “evaluate the financial impact of the present practices on the cane price payable to farmers,” the release noted.
The committee may also consider “any other related matters deemed necessary” to ensure fair and transparent transactions between growers and mills.
Consultations and reporting timeline
The government has directed the panel to undertake broad-based consultations. It will engage with farmers’ representatives, sugar mill associations, State governments, and other experts or organisations “as considered necessary.” The ministry said the committee will submit its report, containing findings and specific recommendations, “as early as possible” for the Centre’s consideration.
Panel composition
The committee will be chaired by Prof. Ramesh Chand, a former member of NITI Aayog known for his work on agricultural policy. The other members are the Agriculture Commissioner, Ministry of Agriculture and Farmers Welfare; the Joint Secretary (Sugar), Department of Food and Public Distribution; and the Joint Secretary (Legal Metrology), Department of Consumer Affairs.
Background and next steps
The committee’s formation comes after representatives of sugarcane farmers from Karnataka and Maharashtra met Union Agriculture Minister Shivraj Singh Chouhan and Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi. During the meetings, farmers pressed for steps to increase remunerative returns, citing rising cultivation costs and financial stress at the grower level.
With its terms of reference spanning price benchmarks, recovery verification, weighment practices and mechanised harvesting, the committee is expected to provide a comprehensive review of systemic issues affecting farm-gate realisations. Its recommendations are intended to guide policy adjustments across pricing and oversight mechanisms in the sugar sector.
Significance
By initiating a consultative, evidence-based review, the Centre has signalled its intent to address long-standing grievances in the sugarcane economy. The committee’s report—once submitted—will be closely watched by farmers and millers alike for its potential to shape pricing frameworks, improve transparency in recovery and weighment, and support the financial stability of both growers and mills.
Published: October 14, 2026
