|SUGARCANE CONTROL ORDER, 1966
(Control) Order, 1966 provides for price(SMP) for
sugarcane purchased by sugar mills during each sugar
season (Clause 3), payment of interest at 15% per annum on
amounts due beyond 14 days of delivery of sugarcane at
factory gate (Clause 3(3-A), payment of additional cane
price to the growers (Clause 5-A) regulation of
distribution and movement of sugarcane (Clause 6),
licensing of power crushers and khandsari units and
regulation, issue of directions to producers of khandsari
sugar (Clause - 8), power to call for information etc.
from producers (Clause - 9) power to entry, search and
seizure (Clause 9-A) and delegation of powers conferred by
the Sugar (Control) Order, 1966 to any officer or
authority of the Central or State Government.
Synopsis- Sugarcane (Control)
Order 1966 (As amended on 9-9-1983)
provisions contained in this Order are summarised below:-
determination of SMP: Clause 3(1) & 3(2) deal with
fixation of the Statutory Minimum Price having regard to
five criteria, viz. –
- cost of production of
- return to grower from
alternative crops and the general trend of prices of
- availability of sugar to the
consumer at a fair price;
- the price at which sugar
produced from sugarcane is sold by the producer of
- the recovery of sugar from
for payment of cane price: Clause 3(3) deals with fixation
of 14 days period for making payment for sugarcane
delivered at factory gate or at cane collection center.
liability on delayed payments: Clause 3(3-A) provides for
interest liability on payments delayed beyond 14 days of
delivery of sugarcane at 15% per annum.
cane price: Clause 3(7) deals with deposits to be made
with the District Collector, within three months of close
of a sugar year, amounts of cane price unpaid or lying
unclaimed with the factory on the last day of the sugar
Rates of cane
price: Clause 3A provides for payment of sugarcane price
either at the rates of SMP notified by the Central
Government or at the "agreed price" ( i.e. the
price agreed between the producer and the cane grower).
Minimum Price for
khandsari: Clause 4 deals with fixations of minimum price
for khandsari sugar at a rate not exceeding the SMP fixed
by Central Government for cane supplies made to sugar
factories in the region, and prohibits sale or purchase of
cane at a price lower than that fixed for khandsari sugar
producer under this clause.
price: Clause 5-A provides for payment of additional cane
price in accordance with the formula contained in the
Second Schedule to the Sugarcane (Control) Order, 1966.
This formula (generally referred to as "the Bhargava
Formula") is meant to enable the farmer to get a
remunerative price for the cane supplied after 1-10-1974,
by sharing the profits arising out of excess realisation
with the producer sugar factory.
producers / growers, regarding additional cane price:
Clause 5-A(2) provides for intimation in writing to the
producer of sugar and the cane grower connected with the
supply of sugarcane regarding the additional cane price
determination of additional cane price: Clause 5-A(3)
deals with appeal against the additional price
determination and provides for a period of 30 days from
the date of communication in this regard for appeal by the
aggrieved party, with power to the Government will be
supply of fixed percentage of cane produced: Clause 5-A(7)
deals with restriction on the cane grower to supply not
less than 85% of sugarcane agreed to be supplied by him,
and if subjected to any penalty for failure to supply 85%
of cane, deprives him of the entitlement to additional
cane area: Clause 6 deals with the power of Government to
regulate distribution and movement of sugarcane such as
fixation of "reserved area" for a sugar factory,
grower, directing the cane supplier and sugar factory to
enter into an agreement, prohibiting or restricting the
export of sugarcane from any area without a permit etc.
khandsari units: Clause 7 deals with power to license
power crushers, khandsari units and crushers to regulate
purchase of sugarcane.
powers: Clause 11 deals with the delegation of powers to
any authority of the Central/State Government.
legislations relating to enforcement of payment of cane
price: There are various State legislations regarding
enforcement of payment of sugarcane price to growers. In
Uttar Pradesh, the U.P. Cane (Regulation of Supply and
Purchase) Act, 1953, contains provisions for tagging a
percentage of advances given by banks for payment of cane
price, together with interest thereon, by the Collector,
on the basis of recovery certificate issued by the Cane
Commissioner, as if it were an arrear of land revenue.
Similar provisions also exist in State legislations of
Madhya Pradesh, Andhra Pradesh, Bihar and Tamilnadu and
contain provisions for penalties for contravention, which
include fines and imprisonment.