New Delhi: A majority of the country's large khandsari sugar manufacturing units have been registered on the National Single Window System (NSWS) as part of the Centre’s efforts to improve regulatory oversight, strengthen data transparency and monitor the sector.
According to official data, 51 of the 66 large khandsari units have been onboarded on the NSWS portal, where all sugar mills are already registered. The remaining khandsari units are expected to register in the sugar season starting October.
Khandsari units are small-scale, traditional units that produce unrefined sugar from sugarcane using basic machinery. They play an important role in India's sugar ecosystem, particularly in rural areas.
The government is tightening oversight of the sugar sector to ensure adequate domestic availability and curb speculative activity. The Centre recently imposed stockholding limits on sugar dealers until the end of November to discourage hoarding and stabilize prices during the festive season.
The Sugar (Control) Order, 2025, effective 1 May, for the first time brought khandsari units with crushing capacities above 500 tonnes crushed per day (TCD) under government oversight. The move was to ensure fair and remunerative prices for sugarcane farmers and improve the accuracy of national sugar production estimates.
India has 370 operational khandsari units with a combined capacity of about 95,000 TCD. Of these, 66 units are above the threshold capacity of 500 TCD, collectively accounting for about 55,200 TCD.
“During the 2025-26 sugar season, 52 of the country's 66 large khandsari units were operational. Of the total units, 51 have registered on the NSWS portal, with the majority located in Uttar Pradesh, followed by Maharashtra,” one person familiar with the matter said.
Officials indicated that efforts are underway to onboard the remaining 15 units, after which the entire registered khandsari sector will be covered under the digital platform.
Comprehensive database
“We expect the remaining units to get registered in the upcoming sugar season,” a second person said. “The system is also expected to generate a comprehensive database, allowing policymakers to obtain better visibility into the sugar sector.”
India is one of the world's largest sugar producers. According to the Indian Sugar and Bio-energy Manufacturers Association, domestic sugar production was 27.6 million tonnes as of 15 July.
Industry executives expect total sugar production to touch about 28 million tonnes in the 2025-26 season, which is equivalent to India’s annual sugar consumption. According to estimates, institutional consumption by food and beverage companies, hotels, restaurants and the catering sector, and processed food makers accounts for 60-65% of the total demand, with the remaining from retail households.
“Bringing large khandsari units under the regulatory framework will strengthen transparency in cane procurement and help growers receive remunerative prices for their produce,” said Ranbir Singh, a sugarcane farmer and president of the Saharanpur-based Kisan Nyay Morcha, a farmers' group.
“This ensures mandatory payment of the fair and remunerative price to farmers and enhances the accuracy of sugar production data,” said professor Sudhir Panwar, a farm expert and former member of the Uttar Pradesh Planning Commission.
A query emailed to the department of food and public distribution on 30 July remained unanswered till publishing time.