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CO-OPERATION,

MARKETING AND TEXTILES DEPARTMENT

Mantralaya Annexe, Madam Cama Road, Hutatma Rajguru Chowk,

Mumbai 400 032, dated the 16th February 2016

NOTIFICATION

MAHARAsHTRA REGULATIONOFSUGARCANEPRICE(SUPPUEDTO FACTORIES)ACT,2013.

No. SSK. 20141C.R. 71125C.-In exercise of the powers conferred by sub-sections (1) and (2) of
section 12 of the Maharashtra Regulation of Sugarcane Price (Supplied to Factories) Act, 2013
(Mall. XXXIII of 2013), the Government of Maharashtra is hereby pleased to make the following
rules, the same being made for the first time, namely ;_

1. Short title.~These Rules inay be called the Maharashtra Regulation of Sugarcane Price

,
(Supplied to Factories) Rules, 2016.

2. De{initions.-(1) In these rules, unless the context otherwise requires,-

(a) "Act" means the Maharashtra Regulation of Sugarcane Price (Supplied to Factories)

Act, 2013 (Mah. XXXIIIof 2013);

(b) "FRP" means the Fair and Remunerative Price decided by the Central Government

under the provisions of the Sugarcane (Control) Order, 1966;

(c) "Harvesting and Transport Cost" means the cost of-harvesting of sugarcane and its

transport from field to sugar factory;

.

(d) "Non-OfficialMember" means a member of the Board nominated by the Government,

as a representative of factories under clause (e) of Section 3, or of farmers under clause (j) of '
that section, as the case may be;

(e) "section" means the section of the Act.

(2) Words and expressions used, but not defined herein, shall have the same meanings

respectively , assigned to them in the Act.

3. Meetingsof Board.--(1) All meetings of the Board shall be presided over by the Chairman.
In the absence of the Chairman, any member nominated by the Chairman shall officiate as

' Chairman for the said meeting.

,

(2) One-third of the members of the Board, including its Chairman shall form quorum of the

meeting of the Board.

.

(3) If at any meeting, there is no quorum, the Chairman shall adjourn the meeting to any

subsequent time and no quorum shall be necessary for such adjourned meeting.

(4) No subject other than what is included in the agenda shall be transacted at a meeting,
except with the permission of the Chliirman. No motion or amendment shall be discussed and
resolved upon at a meeting unless it is seconded by another member attending such meeting.

(5) Every resolution shall be decided by a majority of members present and voting. In case

of equality of votes, the Chairman shall have a casting vote.

(6) The notice of the Board meeting shall be in writing and shall include date, time, ventre
and agenda of the meeting. Such Notice, shall be' circulated to all the members of the Board not
less than ten clear days before the meeting.

..

(7) The venue of the meeting of the board shall be Mumbai or any other place as decided by

Chairman of the Board.

(8) Notice of resolution or a motion to be moved by a member at a meeting of the committee

shall be given to the Chairman at least seven clear days before.the date of the meeting.

'

(9) A special meeting may be called at any time but with minimum th:~e clear day's prior
.
f th Chairman of the Board or on a requisition in wrttmg of not less than

t th .

notice, a
e InS ance 0
.
t
one-third members of the Board.

e

(10) The Member-Secretary

into
correspondence on behalf of the Board and discharge such other functions as may be assigned by
the Board for the regular

of €!ach meeting of the Board, enter

functioning of the Board.

shall keep minutes

.

,4. Eligibility' (o~ !"om~nat.ion of Nor:-off!cial Member under clause (e) of sub-section (3) of
Section 3.-The eligibility criteria for nomination of representatives of sugar factory under clause
(e) of sub-section (3) of Section 3 shall be as follows :-

(i) The person to be nominated shall be an office bearer of a co-operative sugar factory

or an occupier of the factory, as the case may be;

(ii) The Factory which is represented by such representative, shall not have defaulted.
in the payment of any Government dues that
is to say, any Government loan, the tax on
purchase of sugarcane, Loan given on Government guarantee and Guarantee fees payable to
tl:e Government.

(ii;} Factory which is represented by such representative shall not be in arrears of F.R.P.
for the pre\jous year at the time ofhis first nomination and shall not be in arrears of sugarcane
payment as p~r provisions of clause (a) of Section 4 at the time of subsequent nominations.

(iv) Nomination of representatives of five sugar factories shall be Regionwise.

5. Eligibility for Nomination of Non-official Member under clause (fJ of sub-section (3) of
eligibility criteria for nomination of representatives of farmers under clause (f)

Section 3.-The
of sub.:section (3) of Section 3 shall be as follows :-

(i) The ,uerson to be nominated shall be a farmer and shall have agricultural land in his name

in the State 'o(,Maharashtra, and

(ii) Such per."'1onshall have supplied sugarcane to any sugar factory within the State, for

three consecutive ye~"lrsprior to his nomination, and

(iii) During his tenti.l'e as Non-officialmember, such person shall continue to remain sugarcane,'

supplier to any sugar faci~ry in the State, and

(iv) Such person must bE:an active member or shareholder of any sugar factory, and

(v) Such person shall not ha ,'e more than two live children at the time of his nomination or

during his term as such member:

Explanation.-For

the purposes of this clause,-

(a) where a couple has only one child on or after the date .of commencement of these
rules, any number of children born out of a single subsequent delivery shall be deemed to be

one entity.

(b) "child" does not include an adopted child or children.

(vi) Such person shall not be a defaulter of any Co-operative Society registered under the
Maharashtra Co-operative Societies Act, 1960 or under the Multi State Co-operative Societies
Act, 2002 or of any Bank being regulated under the Banking Regulation Act, 1949, as the case

maybe.

6. Travelling Allowance, Daily Allowance and Sitting Allowance to non-official members. 

Non-officialmembers shall be paid travelling allowance, daily allowance as provided in paragraph
No.12 of Government Resolution, Finance Department; No.Travel-lOlO/CaseNo.2/ Service-5,dated
the 3rd March 2010 and sitting allowance as per Government Resolution, Finance Department,
No.Sitting-20121CaseNo. lIService-5, dated the 24th May 2012.

7. Weighment.-(l)

The factories shall, within six months from the commencement of these

Rules, make arrangement of electronic weigh bridge or scale.

(2) All scales and weights to be used shall be in conformity with the provisions of the Legal
MetrologyAct, 2009 (1 of2010) and shall be calibrated every year ~ith the appropriate authority;

and shall be kept open for inspection or examination at all reasonable times without prior notice
and the occupier shall make available all scales, weights and concerned records for such inspection
by ccncerned Government

authority.

8. Parameters for determination of Sugarcane price.-(l) The sugarcane price payable to
the farmers under section 4 shall be determined having regard to the followingparameters such
as value of sugar, including the value of the by-products viz., value of bagasse, value of molasses,
value of press mud and harvestin~ a_ndtransporting cost.

(2) The parameters referred to in sub-rule (1) shall be as follows :_

(a) Value of sugar.-The

"value of sugar" shall be ascertained as the actual amount
realized from the sale of all grades of sugar such as raw sugar, white sugar, refined sugar,
levy sugar (if any), sugar exported, to the factory during the financial year including the cost
of sugar given to members at concessionalrates as decided by the Government and including
the subsidy for promotion of export of sugar given by the Central or State Government.

Explanation.-In calculating the value of unsold sugar during the financial year the provisions
of Accounting Standard-II (AS-II) issued by the Chartered Accountant's Institute of India, shall
apply.

(b) Value of Bagasse.-" Value of Bagasse "shall be ascertained as the actually realization
of amount from bagasse sold during the financial year and shall include the value of bagasse
during the financial year calculated on the basis of average market rates:

Provided that, where the bagasse is used as a boiler fuel for the purpose
manufacturing sugar in the factory, the cost of such bagasse shall not be counted in
ascertaining the value of bagasse:

Provided further that in case, the factory is having cogeneration unit, the quantity

of bagasse shall be reckoned as an average rate of four per cent of total cane crushed as .
per average market rates.

(c) Value ofmolasses.-" Value of molasses "shall be the amount actually realized by the

factory from sale of molasses during the financial year :

Provided that, in case the factory is having a distillery unit, value of molasses, as
per the market rates, used in such distillery or used for any other purpose by the such factory
shall be considered as income:

Provided further that, in case any molasses remains unsold by the factory, during
the financial year, the value ofmolasses shall be calculated on the basis of average market
rates.

Cd)Value of press mud.i-r value of press mud" means, the actual realization of amount to

the factory from sale of press mud during the financial year:

...

Provided that,
in case the. press mud is utilized by factory, for composting or other
purposes, the value of such press mud as per the average market rates shall be consideredas
income of the factory :

Provided further that, there remains any unsold press mud, during the financial
year, value of such press mud calculated on the basis of average market rates shall be
treated as the income of the factory.

(e) "Harvesting and Transport Cost".-Only the following expenses shall be considered

for determining the Harvest~g .and Transport cost :~

(i) Costs incurred for harvesting, loading and transporting sugarcane from field to

the sugar factory ;

(ii) Cost for movement of labour and transport vehicles engaged for harvestirig and

transportation;

(iii) Cost of facilities actually provided for labourers and transporters; and

~

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(iv) Amount of commission actually paid for harvesting and transport.

Note.-While deciding "harvesting and transport cost" the cost fixed by Maharashtra State
Co-operative Sugar Factories Federation Limited, Mumbai and actual harvesting and transport
cost, paid by.the factory, whichever is lower, shall be considered.

.

9. Fixation of Sugarcane Price.:.-(l) Fixation of sugarcane price, as per clause (a) of section'

4 shall be done,-

(a) either on the basis of the realization from sale of sugar alone; or

(b) on the basis of the realization from sale of sugar including the realization from sale of
primary by-products such as bagasse, molasses and press mud, as may be decided by the
Board:

.

Provided that, in case Board observed that market price of by-products at the time

of sale is less, sugarcane price shall be fixed at market price.

(2) Every factory which has undertaken crushing shall, within 120 days from the end of the
financial year, submit the detailed accounts ofits crushing, realization from sale of sugar, molasses,
bagasse and press mud in such format as the Board may specify, from time to time and other
relevant information duly certified by the statutory auditor of the factory as required by Board
which is necessary for it to decide the sugarcane price.

(3) For the purpose of calculating revenue sharing from sale of sugar and its primary by 
products, every sugar factory shall maintain the records in such form as the Board may specify,
from time to time and shall also submit the necessary documents to Commissioner for Sugar
Officeas and when required and also adopt the measures to bring uniformity in all sugar factories'
as directed by Commissioner for Sugar from time to time.

(4) Where the factory has undertaken the harvesting and transportation of sugarcane, the
for sugarcane supplied shall be made after deduction of actual harvesting and

payment
transportation cost.

(5) The Board shall by resolution fix the sugarcane price. After order of the Member Secretary

of the Board communicate the same.

(6) The factory shall pay the sugarcane price, arrived at as the provisions of these rules,

within thirty days from the date of the Order of the Board under sub-section (5) :

. ,

Provided that, if the factory fails to pay the price within the said period of thirty days,

there shall be paid an interest at the rate of twelve per centum per annum :

Provided further that, nothing in these rules shall prevent a sugar factory, to pay the
price, over and above the price fixed by the Board under sub-section (5), if the financial
health of sugar factory is good: .

Provided also that, in such case, such factory shall obtain prior approval of Commissioner

for Sugar.

10. Payment to Sugarcane growers.-(l) Payment to sugarcane growers shall be made on
the basis of the electronically recorded weight of the sugarcane. The price of the sugarcane to be
'payable shall be rounded to the nearest rupee.

(2) All payments to the sugarcane growers shall be made through Bank accounts only,

By order and in the name of the Governor of Maharashtra,

S. S. SANDHU,
Principal Secretary to Government.

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