New Delhi, Nov. 10 -- For India's sugarcane farmers, this could well be the sweetest news in six decades. The government is reviewing a law to modernize and simplify outdated regulations governing the world's second-largest sugar producer, and if the Centre goes ahead with plans to revise the Sugarcane (Control) Order, 1966, income of sugarcane farmers could rise. The 1966 order was framed when sugar was the only major output from cane, but does not take into account the fact that the industry has since diversified. Today, sugar mills also produce ethanol, electricity, molasses, bagasse, and bio-CNG, two government officials said on the condition of anonymity. Yet, the existing rules continue to link the fair and remunerative price (FRP)-the minimum price that sugar mills in India need to pay sugarcane farmers-for cane only to sugar prices, leaving little scope for farmers to benefit from additional revenue streams. Under the proposed draft, which Mint has seen, the FRP for cane would be tied to the total revenue from all cane-based products, and not just sugar. The new order also provides for quicker payment of dues to farmers-within 14 days of cane purchase. The Sugarcane (Control) Order empowers the Centre to fix cane prices, regulate sugar production, and oversee the sale and movement of sugar. Though the order has been amended periodically, most changes have been piecemeal. For consumers, a more efficient regulatory structure could help stabilize retail sugar prices and reduce volatility, while also making India's sugar industry more competitive in the global market, the officials said. There are around 703 sugar mills in India, split into 325 cooperative, 335 private mills, and 43 public sector factories. The proposed Sugarcane (Control) Order will simplify definitions and bring clarity to key provisions, which will have a bearing on the Rs.1.3-lakh crore sugar industry. It will also review the 15-km minimum distance rule between two sugar factories, which was introduced to avoid competition as mills then were few and small, but is now seen as outdated and restrictive. This means that more mills could be set up near existing factories, especially in regions where sugarcane is readily available. The government is planning to remove this requirement to allow mills to compete freely for sugarcane, said the first of the two officials cited earlier. The development assumes political significance and will impact major sugarcane growing states of Uttar Pradesh (80 Lok Sabha seats), Maharashtra (48 Lok Sabha seats), and Karnataka (28 Lok Sabha seats), that together account for nearly a third of the total 545-member lower house of parliament. "The intention behind the amendment to the Sugarcane (Control) Order, 1966, is to extend the ambit of government control to the cottage industry segment of sugar, which includes production units of gur, khandsari, and raw sugar. At present, the share of khandsari units in sugarcane consumption is around 31% of total sugarcane production. Khandsari units cannot compete with sugar mills because of differences in efficiency and diversity of products," said Sudhir Panwar, farm expert and former member of the Uttar Pradesh Planning Commission. Queries emailed to the Centre's department of food and public distribution remained unanswered till press time. The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said it would respond once the draft of the new order is released. Farmers have also been demanding that FRP be linked to sugar recovery and market price of sugar and by-products like ethanol and molasses....