Centre Forms Panel Led by Ramesh Chand to Examine Sugarcane Farmers' Pricing Concerns

The Union Government on Tuesday (October 13, 2026) constituted a four-member committee headed by Ramesh Chand, former member of NITI Aayog, to examine the issues raised by sugarcane farmers and to recommend "appropriate measures" for addressing their concerns.

The committee was set up 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, seeking higher remunerative returns for cane growers.

According to a release issued by the Union Food Ministry, the panel will examine the demand for higher returns after taking into account cultivation costs and other relevant factors. It will also study the demand for a 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.

The committee's terms of reference include existing mechanisms for testing and reporting sugar recovery, and measures to ensure transparent verification of recovery. It will also review prevailing sugarcane weighment practices at sugar mills, including the adequacy of calibration, inspection and verification arrangements.

In addition, the panel will examine current practices relating to deductions made from the weight of mechanically harvested sugarcane. It will assess the extent of actual losses, if any, arising from mechanised harvesting, and evaluate the financial impact of these practices on the cane price payable to farmers. The government said the committee may also consider any other related matters it deems necessary.

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

The committee has been asked to consult all stakeholders, including farmers' representatives, sugar mill associations, State Governments and other experts or organisations as considered necessary. It will submit its report, containing its findings and specific recommendations, "as early as possible" for consideration by the competent authority, the statement said.

What the issues involve

Sugarcane pricing in India works through more than one mechanism. The Centre fixes a Fair and Remunerative Price (FRP) for cane, which is the minimum price mills are required to pay farmers. Some States also announce a State Advised Price, which is generally higher than the FRP. Separately, the Centre fixes an ex-mill MSP for sugar, intended to help mills cover their production costs.

Recovery refers to the proportion of sugar extracted from a given quantity of cane. Since recovery varies with crop quality and milling conditions, the way it is measured and reported directly affects the price ultimately paid to a farmer. Growers have long raised questions about the transparency of these measurements.

Weighment at mill gates is another long-standing point of contention. Mechanically harvested cane often carries extraneous matter such as mud, leaves and trash, and mills deduct for this material before payment. Farmers argue that the deductions are not always matched by actual losses, which is among the questions the new panel has been asked to examine.

The committee's findings are expected to inform the government's decisions on cane pricing, sugar pricing and the practices followed at mills. No timeline has been announced beyond the direction that the report be submitted as early as possible.