Legal Framework

Rules & Acts

In India, government policies, both at the Centre and State levels have played a crucial role in the development of the sugar industry. Sugar industry in India is highly regulated industry starting from sugarcane to the end-product sugar. Even the by-products are also subject to government control. The Government regulates major aspects of the Vacuum Pan Sugar industry including the licensing of factories, the fixation of cane prices, the purchase and distribution of levy sugar and the release of sugar to the open market.

Sugarcane being an item of human consumption and is cover by Schedule 7, List III, item 33 of the Constitution of India under the concurrent list and, therefore, the State Legislature of Uttar Pradesh had the power to frame a law under Article 245 of the Constitution of India for regulating the supply and purchase of sugarcane to be operative within the territorial limits of the State of Uttar Pradesh only.

For every single action, there are acts and laws established by the Government. The main objectives behind the policy are to ensure a fair and timely price to cane growers, supply of sugar to consumers at reasonable prices and adequate returns to the industry.

Followings are the important acts related to the sugar industry.

  • Law Relating to Sugar Industries in Uttar Pradesh
  • U.P. Sugarcane (Regulation of Supply & Purchase) Act, 1953
  • Essential Commodities Act, 1955
  • The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964
  • The Electricity Act, 2003
  • UP Sugar Wage Board Act, 1991
  • UP Co-operative Sugar Mill Societies (Special Provisions) Rules, 2007



















U.P. Sugarcane (Regulation of Supply & Purchase) Act, 1953

The U.P. Sugarcane (Regulation of Supply & Purchase) Act 1953 provides a mechanism for reasonable, necessary, sufficient and continuous supply of sugarcane to the sugar factories in the crushing season. Keeping in mind the interest of the sugarcane growers, cane growers co-operative societies, sugar factories and also inter se interest of the sugar factories. The supply of sugarcane to the sugar factories in the quantity which may be reasonably required by them for production in a particular season or seasons is to be regulated by the provisions of this Act.


Essential Commodities Act, 1955

An act to provide, in the interests of the general public, for the control of the production, supply and distribution of, and commerce, in certain commodities. This act ensures effective control on Hoarding of Stock of Sugar.


The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964

An act to provide in public interest for the control of storage, gradation and price of molasses produced by Sugar Factories in Uttar Pradesh and the regulation of supply and distribution thereof. This act also ensures Reservation for cheaper supply of Country Liquor.


The Electricity Act, 2003

An act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto. Re power (green energy) generated by the Cogenerating sugar mills is covered under this Act.


UP Sugar Wage Board Act, 1991

An act to provide for the prescribing of proper wages for workers employed in the sugar industry and for matters incidental thereto or concerned therewith. This is a tripartite arrangement between the State Government, Sugar Industry and the Labour Union. Tenure of one settlement in 5 years and is acceptable to all concerned.


UP Co-operative Sugar Mill Societies (Special Provisions) Rules, 2007

Cooperative cane development societies and UP Co-operative Sugar Mill Societies (Special Provisions) Rules-2007 made under section 125-A and 130 of the Uttar Pradesh Co-operative Societies Act, 1965.

Cane cooperative societies, actively coordinate with the sugarcane farmers to ensure availability of high quality agricultural inputs, as well as to implement various schemes issued by the government for cane development and fulfill the objectives of the society.

The main function of the cooperative Cane Development Societies of the state are as follows:-

  • Providing essential agri-inputs in form of fertilizers, pesticides and machinery etc. to remember cane farmers.

  • Providing loan to member cane farmers for agricultural inputs under NABARD scheme. .

  • To ensure cane supply to sugar mills ny making arrangements for sugarcane servey, basic quota/satta calculation, calendaring and issuing of sugarcane supply slip for sugarcane supply of member cane farmers.

  • To provide benefits of sugarcane development schemes of Central + State Government to their member cane farmers.