The Union Government, on Tuesday (October 13, 2026), constituted a four-member panel headed by former member of NITI Aayog Ramesh Chand to examine issues raised by sugarcane farmers and recommend “appropriate measures” for addressing their concerns. Representatives of sugarcane farmers from Karnataka and Maharashtra had met Union Agriculture Minister Shivraj Singh Chouhan and Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi demanding that the government must increase remunerative returns to sugarcane farmers. 

A release issued by the Union Food Ministry said the panel will examine the demand taking into account cultivation costs and other relevant factors. “It will also examine the demand for revision of the ex-mill Minimum Selling Price (MSP) of sugar in the context of sugar production costs, market realisations, and the financial viability of sugar mills,” it said.

“Other key areas of examination will include existing mechanisms for testing and reporting sugar recovery, measures to ensure transparent verification of recovery, and prevailing sugarcane weighment practices at sugar mills, including the adequacy of calibration, inspection and verification mechanisms,” the release added. 

The Committee will also examine prevailing practices, relating to deductions from the weight of mechanically harvested sugarcane and assess the extent of actual losses, if any, arising from mechanised harvesting. “It will evaluate the financial impact of the present practices on the cane price payable to farmers and may consider any other related matters deemed necessary,” the government said. 

The Committee will consult all stakeholders, including farmers’ representatives, sugar mill associations, State Governments and other experts or organisations, as considered necessary. “The Committee will submit its report, containing its findings and specific recommendations, as early as possible, for consideration by the competent authority,” the statement added.

Apart from Prof. Chand, the panel comprises the Agriculture Commissioner, Ministry of Agriculture and Farmers Welfare; Joint Secretary (Sugar), Department of Food and Public Distribution and Joint Secretary (Legal Metrology), Department of Consumer Affairs as members.

Welcoming the Union government’s decision to permit the use of 100% ethanol as an alternative to petrol and diesel, Karnataka State Sugarcane Growers’ Association has said the decision fulfils a long-pending demand raised by farmers nearly two decades ago.

The association president, Kurubur Shanthakumar, recalled that delegates at the South India Farmers’ Convention held in Mysuru in 2006 passed a resolution urging the Centre to promote ethanol production from sugarcane and allow its use as a fuel.

The convention argued that the large-scale adoption of ethanol could significantly reduce India’s fuel import bill and save substantial foreign exchange. Farmer organisations had continued to pursue the demand over the years, and the Centre’s decision marks the culmination of those efforts, the farmer leader said in a statement here.

Referring to Union Minister Nitin Gadkari’s remarks, Mr. Shanthakumar said that the wider use of ethanol could help the country save up to ₹22 lakh crore in foreign exchange. The policy is expected to create fresh opportunities for sugarcane and maize growers in helping boost ethanol production, he added.

The decision is likely to foster greater competition among ethanol-producing factories, resulting in better and more remunerative prices for farmers’ produce.