SUGAR CONTROL ORDER, 1966
The Sugar
(Control) Order 1966 provides for power to the Government
to regulate production of sugar, restrict sale etc. of
sugar by producers, movement of sugar and quality of
sugar, call for information from producer or recognised
dealer, inspection, entry, search, sampling and seizure of
sugar and delegation of powers conferred by the Sugar
(Control) Order, 1966 to any officer or authority of the
Central or State Government.
On the basis of
the quarterly free sale quota decided by the Government,
month-to-month release orders for sale of sugar in open
market are issued under clause 5 of the Sugar (Control)
Order, 1966.
Synopsis of Sugar
(Control) Order, 1966
Powers
In Sugar Control Order
Power
to regulate production of sugar
Power
to restrict sale, etc. of sugar by producers
Power
to issue direction to producers and dealers
Power
to regulate movement of sugar
Power
to regulate quality of sugar
Power
to call for information etc.
Power
to inspection, entry, search, sampling, seizure, etc.
Procedure
to draw Sugar Samples
Synopsis Of Sugar (Control)
Order, 1966
The important
provisions contained in the Sugar (Control) Order, 1966
are as under :-
Licensing: Clause
3 deals with the power to regulate production of sugar
through the grant of license (though the sugar industry
has since been deleted from the list of industries
requiring compulsory licensing under the provisions of the
Industries (Development and Regulation) Act, 1951, a
minimum distance of 15 km would continue to be observed
between an existing sugar mill and a new mill. The
entrepreneurs would be required to file an Industrial
Entrepreneur Memoranda (IEM) with the Secretariat of
Industrial Assistance in Ministry of Industry.)
Prohibition on
sale of sugar: Clause 4 empowers the Central Government to
direct that no producer shall sell or agree to sell or
otherwise dispose of or deliver or agree to deliver any
kind of sugar or remove from the bonded godowns of the
factory except under and in accordance with a direction
issued in writing by the Central Government.
Freesale release
orders: In exercise of the powers conferred by this
clause, Notification No. GSR 345(f)/ess.com/Sugar dated
4.6.1979 was issued prescribing the requirement of a
written order for sale of sugar by factories.
Month-to-Month release orders for sale of free sale sugar
are, therefore, issued under clause 5 of the Sugar
(Control) Order, 1966 to satisfy the requirement of
"a direction in writing by the Central
Government" occurring in Clause 4 of the said Order.
Sugar Trade:
Clause 5 of the Sugar (Control) Order, 1966 empowers the
Central Government to issue directions to sugar producers
or recognised dealers, from time to time, regarding
production, maintenance of stock, storage, sale, grading,
weighment, disposal etc. in exercise of such power,
Central Government issues directions through notified
orders –
- for regulating sale by sugar
factories of a fixed percentage of each month, within
a specified period, i.e. weekly/fortnightly as is
deemed necessary.
- For fixing specific stock
holding limits on sugar dealers, and
- For imposing restrictions on
khandsari units regarding declaration of stocks and
sale of stocks within specified periods.
Permit for
transport of sugar: Clause 6 deals with grant of general
or special permit for transport of sugar.
Regulation of
quality of sugar: Clause 7 confers the power to regulate
the quality of sugar in terms of Indian Sugar Standard
Grades and to direct reprocessing of sugar not conforming
to such standard grades.
Utilisation of
levy sugar: Clause 9 deals with the utilisation of sugar
taken delivery of in pursuance of a direction made under
Section 3(2) (f) of the Essential Commodities Act and
requires the submission of utilisation certificate to the
Chief Director within fifteen days of taking delivery.
Levy Sugar is covered in the sugar procured by Government
under Section 3(2) (f) of the E-C-Act.
Inspection
seizure etc: Clause 11 deals with the power to inspection,
entry, search, sampling, seizure etc.
Delegation of
powers: Clause 15 deals with the delegation of powers
conferred by the Sugar (Control) Order, 1966 to any
officer or authority of the Central/State Government.
(The Sugar
(Control) Order, 1966 as amended on 14th June 1999 also
brings under its purview the importers and imported
sugar.)
Powers Sugar Control Order
Power To Regulate Production Of Sugar
The Central
Government may, by order published in the official
Gazette, direct that no sugar shall be manufactured
from sugarcane except and in accordance with the
conditions specified in a license issued in this
behalf, whether on payment of a fee or otherwise.
Power To Restrict Sale, Etc. Of Sugar By Producers
The Central
Government may direct that no producer shall sell or
agree to sell or otherwise dispose of or deliver or
agree to deliver any kind of sugar or remove any kind of
sugar from the bonded godowns of the factory in which it
is produced, except under and in accordance with a
direction issued in writing by the Central Government.
Provided that this clause shall not affect the pledging
of such sugar by any producer in favour of any scheduled
bank as defined in clause (e) of Section 2 of the
Reserve Bank of India Act, 1934 (No. 2 of 1934) or any
corresponding new bank and Transfer of Undertakings)
Act, 1970 (5 of 1970), and no such bank shall sell the
sugar pledged to it except under and in accordance with
a direction issued in writing by the Central government.
Power To Issue Direction To Producers And Dealers
The Central
Government may, from time, to time, by general or
special order, issue to any producer or recognised
dealer, or any class of producers or recognised
dealers, such direction regarding the production,
maintenance of stock, storage, sale, grading, packing,
marking, weighment, disposal, delivery and
distribution of (any kind of sugar) as it may deem
fit,
Sugar Attached By
Government Officers, Etc., Not To Be Sold Without
Directions
Where any
stock of sugar with any producer or recognised dealer
is attached or seized
- by any officer of the
Central or a State Government in accordance with the
provisions of any enactment for the time being in
force, or
- in pursuance of any
proceeding in a civil court, the sugar so attached
or seized shall not be ordered to be sold unless the
officer or court is satisfied that directions have
been issued by the Central Government under clause 5
regarding the sale of such sugar.
Power To Regulate Movement Of Sugar
The Central
Government may, by general or special order, direct
that no person shall transport or offer or accept for
transport whether by road, rail or water, all or (any
kind of sugar) except under:-
- a General or special permit
issued in this behalf
- a military Credit Note:
Provided that
nothing in this clause shall apply to the transport of
sugar not exceeding one kilogram as part of the
personal luggage of a bona fide traveler.
Power To Regulate Quality Of Sugar
- The Central Government may
prescribe the quality of sugar in terms of Indian
Sugar Standard Grades to which all kinds of sugar
should conform at the time of delivery in pursuance
of the direction issued to a producer under clause
(f) of sub-section (2) of section (3) of the
Essential Commodities Act, 1955 or clause (5) of
this order.
- When the Central Government
is of the opinion that any stock of sugar with any
producer is below any of the Indian Sugar Standard
Grades of sugar, it may direct the producer to
reprocess the said stock with a view to conform to
one or more of the Indian Sugar Standard Grades of
sugar or to sell it only to bulk consumers for use
in the manufacture of their products.
-(***)
OMITTED BY G.S.R. 1747/ESS. COM./SUGAR, DATED 16th
NOV. 1967.
-UTILISATION
OF SUGAR TAKEN DELIVERY OF IN PURSUANCE OF AN ORDER
UNDER SECTION 3 (2) (F) OF ACT
Where any
person, class of persons or organisation takes
delivery of sugar from any producer in pursuance of a
direction made under clause (f) of sub-section (2) of
Section 3 of the Act, such person, class of persons or
organisation, as the case may be shall:
- Utilise the sugar so taken
delivery of for the purpose for which such delivery
was taken and for no other purpose.
Power To Call For Information Etc.
The Central
Government or any person authorised in this behalf by
the Central Government may with a view of securing
compliance with this order, or to satisfy itself that
any order or direction issued under this order is
complied with:-
- require any producer or
recognised dealer to furnish within such period or
at such intervals as may be specified, such
information, returns or reports and in such forms as
may be required, and
- prescribe the manner in
which accounts of any sales, purchases or other
transactions of sugar should be kept.
Power To
Inspection, Entry, Search,
Sampling, Seizure, Etc.
- Any officer authorised
by the Central Government in this behalf may:-
- direct any producer or
recongnised dealer to maintain such records as he
may specify;
- direct any producer or
recognised dealer to furnish such information as he
may require;
- inspect or authorise any
person to inspect any books or any documents or
stocks of sugar belonging to or under the control of
a producer or a recognised dealer;
- enter and search or
authorise any person to enter and search:-
- any place where
sugar is manufactured including the
machinery installed therein
- Any place in which
there is reason to believe that sugar is
stored in contravention of the order;
- draw or authorise any person
to draw, in accordance with the procedure laid down
in clause 12, samples for examination:-
- from any stock of
sugar belonging to, or under the control of
a producer or recognised dealer;
- from any consignment
of sugar in the course of its delivery or
dispatch by a producer;
- Stop and search or authorise
any person to stop and search:-
- any person
transporting sugar; or
- any vehicle, vessel
or other conveyance used or capable of being
used for the transport of sugar, in
contravention of this order:
- seize or authorise the
seizure of any sugar in respect of which he has
reason to believe that a contravention of this order
has been, is being or is about to be committed,
along with the packages, coverings or receptacles in
which sugar is found or the animals, vehicles,
vessels, or other conveyances used in carrying such
sugar and thereafter take or authorise the taking of
all measures necessary for securing the production
of such packages, coverings, receptacles, animals,
vehicles, vessels, or other conveyances in a court
and for, their safe custody pending such production.
- The provisions of
section 102 and 103 of the code of Criminal
Procedure, 1898 (5 of 1898) relating to search
and seizure shall, so far as may be, apply to
searches and seizures under this clause.
Procedure To Draw
Sugar Samples
- Subject to the provisions of
sub-clause (e) of clause 11, the person drawing the
samples shall follow the procedure as hereunder:-
- Out of the two sealed
portions of the sugar samples received in the
Directorate of Sugar and Vanaspati under sub-clause
(1), one sealed portion shall be examined by the
Grading Committee to determine its quality with
reference to the Indian Sugar Standard Grades in
force for the year in which the sugar was
manufactured. If the grade of the said portion of
the sugar sample is found by the Grading committee
to be lower than the grade declared by the producer
or recognised dealer, as the case may be, the
Directorate of Sugar and Vanaspati shall forward the
other sealed portion of the sugar sample, as
received , to the National Sugar Institute, Kanpur
for determining its grade and the grade determined
by the said Institute shall not be called in
question.
- For the purposes of
sub-clause (2), "Grading Committee" means
the Committee consisting of three class I officers
of the Directorate of Sugar and Vanaspati, appointed
by the Chief Director, to grade samples of sugar.
Certificate
Regarding Samples Drawn
A certificate
to the effect that each of the samples drawn is
representative of the lot from which it was drawn
shall be furnished along with the particulars of the
samples, in the form set out in the schedule hereto
annexed, to the person drawing such samples, by the
producer or recognised dealer, as the case may be, or
his representative and such certificate shell be
countersigned by the person drawing the samples and an
endorsement to the effect that the procedure
prescribed under clause 12 has been followed shall be
made thereunder by the person during the samples and
such endorsement shall be countersigned by the
producer or recognised dealer, as the case may be, or
his representative
Compliance Of
Orders
Every
producer or recognised dealer or other person to whom
any order or direction is issued under any powers
conferred by the order, shall comply with such order
or direction.
Delegation Of
Powers
The Central
Government may, by notification in the official
Gazette, direct that all or any powers conferred upon
it by this order shall, subject to such restrictions,
exceptions and conditions, if any as may be specified
in the direction, be exercisable also by:-
- any officer or authority of
the Central Government;
- a State Government or any
officer or authority of a State Government
- (***)
OMITTED BY G.S.R. 1747 DATED 16 th NOV. 1967.
- REPEAL AND
SAVING
- The Sugar (Control) Order,
1955 and any order made by the Central Government or
a State Government or any authority regulating or
prohibiting the production, supply and distribution
of sugar and trade or commerce therein are hereby
repealed except as respects thing done or omitted to
be done under any such order before the commencement
of this order.
- Notwithstanding such repeal,
an order made by any authority, which is in force
immediately before the commencement of this order
and which is consistent with this order shall
continue in force and all appointments made, prices
fixed, licenses and permits granted, and directions
issued under any such order and in force immediately
before such commencement shall likewise continue in
force and be deemed to be made, fixed, granted or
issued in pursuance of this order.
|