TMI Blog1995 (4) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... /- fixed by the Government. 2. The directions issued by the Full Bench are as under: We are therefore of the view, that unless provisions for the following arc made in it, the State Order will not be valid (i) The sugarcane rowers who are not members of the factory or factories to which they are required to supply their sugarcane shall be paid for the sugarcane supplied by them the price calculated at the market rate prevailing in the locality at the date of the sale; (ii) The market rate may be as agreed between the parties, namely, the sugarcane grower and the factory or factories concerned. If there is any dispute over it, the same should be resolved by an independent authority which may be created under the Order such as the one under clause 12 of the present Order. The authority concerned should decide the dispute expeditiously after hearing the parties and by a speaking order, (iii) No unauthorised deductions on any account should be made by the factory from the price to be paid to the sugarcane grower without his consent. The State Order should provide for a machinery similar to the above to hear and grant to the sugarcane grower, expeditiou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther important feature of post-1951 development noticed by the Commission was setting up of sugar factories largely in the cooperative sector due to Government policy of giving preference to cooperative societies in the matter of licensing. In respect of State of Maharashtra the Commission observed that sugar industry in Maharashtra was progressing very fast and the sugar production in Maharashtra was expected to reach 16.37 lakh metric tonnes and the State was to become the largest producer of sugar in the country. Today the State accounts for nearly 30% of the sugar output. The national output of sugar for 1991-92, 19-9293 and 1993-94 was 134 106 and 96 lakh metric tonnes respectively. The output of Maharashtra was 42, 36 and 27 lakh tonnes for the corresponding years. 4.While granting protection to the sugar factory the Government did not ignore the interest of sugarcane growers. It is the basic rather the only raw material for sugar. It is grown by cultivators who were usually exploited or at least were in danger of being exploited. Therefore, the Government agreed for fixing price of cane. At a conference called by the Government of India in 1933 representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It suggested that minimum price be fixed for sugarcane related to a basic recovery of 8.5% with a premium for every 0. 1% increase in recovery on proportionate basis. It also recommended that the sales realisation from sugar after expenses should be shared with the cane growers who execute agreement for supply of cane and fulfil their contract. Both these recommendations were accepted. The latter has been incorporated as paragraph 5A in the Sugarcane (Control) Order, 1966 order for short). The minimum price for cane is fixed for growers throughout the country and recommendations of Bhargava Commission are being followed both in fixing minimum price of cane, and payment of additional price in accordance with formula framed by it appended as Schedule 11 to 1966 Order. 6. In the State of Maharashtra it was the experience of the Government that there were cyclic ups and downs in sugarcane production in the State which adversely affected some of the sugar factories, particularly those which were identified as sick and financially weak. The Government found that in times of shortage of sugarcane crop, in the absence of statutory provisions earmarking areas for drawal of can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he reserved area to mean, the area reserved for a factory as specified in the schedule pertaining to that factory. Clause (3) of the Order provides that having regard to the crushing capacity of sugar factories and the yield of sugarcane in the reserved areas, and the need for production of sugar, the area as specified in the schedule, shall be reserved for the sugar factory with a view to enabling it to purchase quantity of sugarcane required by it. Sub-clause (2) of Clause 3 prohibits any sugar factory to purchase cane or accept supplies of cane from cane growers except from the area reserved for that factory. The only exception to It is contained in Clauses 4 and 5 of the Order. Clause 4 deals with grant of licence and Clause 5 regulates supply of sugarcane empowering a permit officer to allow a sugar factory to purchase cane from areas other than the reserved for it under Clause 3 provided he is satisfied that the circumstances mentioned in the clause existed. The order was amended in 1987, 1988 and 1989. Sub-clause (1A) was added after sub-clause (1) in Clause 3 of the Order issued in 1984 by the Maharashtra Sugar Factories (Reservation of Areas and Regulation of Crushing an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity of the sugar factories was violative of any statutory provision or the Constitution as the licence for,crushing the sugarcane was granted by the Central Government merit under the provisions of Industries (Development and Regulation) Act, 1951. The Bench repelled the challenge that the order was arbitrary or violative of Article 14 of the Constitution. Nor it agreed with claim of nonmembers of the cooperative societies that the prohibition in the Order from becoming members or obligation to supply cane to the factory in the reserved area was unreasonable or arbitrary. The Bench observed: With the sole intention of avoiding cutthroat competition between the different sugar factories as well as the sugarcane growers, the impugned order has been issued. In this context, it cannot be forgotten that the Cooperative Societies Act has been enacted keeping in view the Directive Principles and the State Policy as enshrined in the Constitution. The cooperative movement in the ultimate analysis is socio-economic and moral movement. It is a part of the scheme of decentralisation of wealth and power. Cooperative capitalism is neither co- operation nor socialism. On the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its validity was challenged only on the ground of the alleged illegality of the restrictions on the freedom to sell and purchase the sugarcane except to and by the factories in whose favour the Reservation Order was issued. The Bench held that the Order issued by the Central Government in 1966 did not provide for fixation of the maximum price of sugarcane to be supplied by the sugarcane grower to the sugar factories. The Full Bench observed that the Aurangabad Bench had issued the directions permitting the growers to sell their sugarcane at the best price to different factories only because there was no machinery to hear the sugarcane growers before fixing the price and redress their grievance. The Bench found that this direction had not been complied. It thereafter considered the question of fixation of price by dividing the sugarcane growers in two categories one, who are members of any co-operative society and the others who are nonmembers. It held that since those growers who were members of the Society had to enter into an agreement under the bye-laws framed which were the same in all co-operative societies they could not make any grievance against fixation of price. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri G. Ramaswamy, the teamed senior counsel appearing for the State could not see any justification for the court to interfere in matters of economic policy and the direction of the Full Bench according to him was violative of the scheme of the Act. Sri Dholakia, yet another senior counsel appearing for the State did not find any rationale to distinguish between controlled price and the market price as once the price, of any commodity was statutorily fixed under the orders issued by the Government then that alone became the market price. Sri Venugopal the learned senior counsel appearing for private undertakings urged that the Act visualised water tight compartmentalisation of the Order issued under it to balance the interests of consumers and when the Government did not fix any maximum price but provided for payment of minimum price only there was no scope to import the concept of higher price or market price. According to him the rationale for price fixation did no suffer from any infirmity nor it caused an prejudice to the cane growers. Sri R. Nariman the learned senior counsel appearing for joint stock companies urged that payment of market price would result in closing do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the members are under an obligation to raise sugarcane in the specified area year after year, the nonmembers are under no such obligation; they are, free to raise such crops as they choose. The argument further was that the economy of each sugar factory was different for various reasons it was also not possible to ensure an uniform price by all the factories. And if every sugar factory is compelled to pay price at ₹ 700/- a tonne, as some factories are paying, most of them would go out of market which would cause incalculable damage to the rural economy of the State. If these societies are to be kept alive, it is necessary that a separate price is fixed for each factory having regard to its own economy and other relevant factors. Neither the members can complain of it nor the non- members. So far as the questions of law are concerned, the learned counsel submitted that neither the Central Government nor the State Government made any order under Section 3(2)(f) of the Act; hence, the was no obligation upon them to ensure the price as contemplated by Section 3(3)(c). It was urged that even if it assumed for the sake of argument that a order under Section 3(2)(f) must be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be used to promote or perpetuate the cooperative movement in the State nor can it be used as a lever to compel growers to become members of the cooperative societies. There is no such compulsion under the Cooperative Societies Act and such a compulsion cannot be brought about by the Reservation of Areas Order. The nonmembers cannot be punished by compelling them to sell their cane to uneconomic and inefficient factories at the price such factories can afford, i.e., at a price far lower than the true value and market price of the cane. The members may be so compelled because they may have a stake in the survival of those societies but the non-members have no such ties to the factory. Article 19(1)(c) of the Constitution of India entitles a citizen of this country not to join a society or an association if he does not wish to. He cannot be compelled by law to join a society or an association. No person can be compelled to walk into these societies, which are in truth debtor colonies . Inasmuch as the State has failed to provide or to ensure the market price as contemplated by Section 3(3)(c) of the Act, the Full Bench was right in declaring that the non-members are entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % with a proportionate increase for every 0. 1% extra recovery. Therefore, normally the minimum price of cane paid by two factories cannot be same. For instance, the normal recovery in the State of Maharashtra is stated to bell.05%. In the year 1987-88 the minimum price fixed was ₹ 19.50 per quintal. The highest and lowest price paid for the sugarcane in the Ahmednagar District during 1987-88 was ₹ 366/- and ₹ 240/ by Sangamner Sahkari Sakkar Karkhana and Jagdamba Sahkari Sakkar Karkhana respectively. The recovery of Sangamner SSK Ltd. was 11.64% whereas the recovery of Jagdamba SSK Ltd. was 10.36%. It was explained that difference of 1.28% between recovery of sugar by the two factories resulted in difference of sugar production per tonne to extent of 12.8 kg. and the realisation too was ₹ 64/- per tonne more. This difference got reflected in the price fixation. 11. The next is the State Advised Price. Every State has its own method to determine it. The power is assumed under Acts of the State Legislature or orders issued by the Governments. For instance, in the State of Haryana a Sugarcane Central Board is constituted under -Section 3 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not. The advance according to the appellants was paid by sugar factories under agreement entered with growers whereas according to respondents it was paid by the Banks and the nonmembers did not enter into any agreement. Since the parties were at variance on an issue of fact they were granted time on 24th February 1995 to file further affidavits clarifying their stand. From the affidavits filed it now transpires that the loans are normally advanced by the village societies or rural banks to the farmers on the certificate issued by the sugar factories showing cane plantation, acreage, date of plantation, etc. Although the factum of agreement between the cultivator and the sugar factory is riot clearly admitted in the reply filed on behalf of the respondent but apart from those cultivators who do not need any loan for growing the crop whose percentage appears to be negligible, it appears by and large rather the uniform practice is that a tripartite arrangement is arrived between the cultivator, the loaning society and the sugar factory. The loan is advanced on basis of the certificate issued by the sugar factory and it is the sugar factory which ultimately repays the amount due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nism of price fixation is explained as under : ------------------------------------------------------------ Mechanism of fixation of cane price Receipts - Financial Results - ------------------------------------------------------------ 1. Sale of Sugar Add - Value of the as on 30/9 of} } Levy and Free sale closing stocks } at assumed prices. the year. } Deduct - value of the opening} stocks of the year } 2.Add or deduct profit or loss from Ancillary Units. 3.Add - other receipts from a) Sales of molasses Press mud Bagasse. b) Miscellaneous receipts. c) Rebates -------- (1) + (2) + (3) (R) ------- Expenditure I. Cane cost (a) Govt. of India minimum price linked with actual recovery deducting the average harvesting/ transport charges. II. Expenditure relating to cane - Commission to Harvesting and Transport contract Khodaki etc. III. Harvesting Transport charges. IV. Cane Purchase Tax. V. Conversion charges. a) Store consumption b) Electrical charges c) Outside repairs d) Salaries/wage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sugar year. 7. The amount A referred to in Explanation 2 shall be computed as under, namely (i) the actual amount realised during the sugar year; and (ii) the estimated value of the unsold stocks of sugar held at the end of 30th September, calculated in regard to free sugar stocks at the average rate of sales name during the fortnight 11th to 30th September and in regard to levy sugar stocks at the notified levy prices as on the 30th September.] Explanation. - In this Schedule Sugar means any form of sugar containing more than ninety per cent. sucrose]. ------------------------------------------------------------- 15.A comparison of the two would indicate that there is not much difference the two. In the latter too the cost incurred in producing sugar has to be deducted fro the receipts. In any case since the grow is paid either the State Advised Price Additional Cane Price whichever is high no prejudice can be said to be caused nonmembers. In the affidavit filed on 10 March 1995 it is stated that the final price determined for the earlier year is the advance price for the next year. For instance, if amount A was fixed as final State Advised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im. And the factory B is not bound to offer him ₹ 500/-. It may or may not. That may lead to uncertainty and even exploitation. And then the price of ₹ 500/- fixed for B is as much State Advised Price as ₹ 400/- for A . Much argument was advanced on how the market price in a locality should be understood. It appears unnecessary to deal with it as any other construction would be destructive of zoning and the concept of pricing in controlled economy. Second, there is no machinery in the State to determine the State Advised Price for non-members as 95% of the sugar factories being in cooperative sector the fixation of price under the bye-laws was always considered to be legal. And rightly so. Therefore, any determination of price by an authority under the bye-laws is valid for cane growers attached to a sugar factory in reserved area. Third, entire concept of minimum and maximum price for cane appears to be out of place. As pointed out by the Commission minimum price is fixed on quality formula. Further, average recovery of the normal crushing period was preferred according to Commission as against average recovery of the optimum period. All this resul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of cane. Every member of the society under bye-law 18A is required to undertake cultivation of minimum of half acre. The nonmembers on the other hand have no such obligation. They are not required to cultivate or grow any minimum cane. But they derive all those benefits and advantages as are available to the members of the society. In the licence for crushing cane issued under clause 4(5) of the State Order it is provided in the Form B clause (xvii) that the factories shall be bound to pay same cane price to non-members as members. A nonmember is also entitled to share the profits which are worked out at the end of the season. There is thus practically no difference between a member and non-member so far supply of cane or its price is concerned. A member is no doubt entitled to some facilities such as running of other business or availing the education facility etc. run by the cooperative societies but that has nothing to do with cane price or its supply. As a matter of fact the sale of by-products etc. is shown as receipt while calculating additional price or final State Advised price. 18. With this background it may now be examined whether provision in the State Zon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ane growers are attached. Twenty per cent of them are non-members. If the Committee starts hearing every individual non-member then it shall prove to be an unending purposeless exercise. One may have right to challenge the price fixation on ground that the Committee or the authority did not act in accordance with the guidelines for fixation of price in accordance with the order but that right can be exercised appropriately only after publication of the price. In these appeals since no one objected, the individual members cannot claim that the price fixed was not fair or just. 19. Therefore, absence of any machinery in the State Order for hearing nonmembers could not destroy effectiveness of pricing. Even otherwise the price fixation in a controlled economy may not be bad so long it is in accordance with the policy formulated by the Government and the decision by the Committee of Experts is not found to be arbitrary. It cannot be assailed only because cane growers of one area are getting better price than the other. The difference in price arising due to application of principle uniformly is neither bad nor arbitrary. It may be that since the price is linked with yield it may c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under an obligation to pay their debts. 21. Coming to the other rationale of the Full Bench that the price of cane having been fixed under the bye- laws for the cooperative societies it was binding on the members and not others it may be appropriate to reproduce the gist of relevant bye-laws noticed by the Full Bench; Bye-laws Nos.63, 64, 64A, 65A and 65B deal with the fixation of price of sugarcane and deduction of certain amounts from the prices paid to the members. Bye-law 63 states that the Board of Directors of the factory will give advances to the members against the price of the sugarcane supplied by them, by prior permission of the Director of Sugar and the Deputy Registrar of the Co- operative Societies and in accordance with their directions and after making deductions for certain purposes. Bye-law 64 states that the price of the sugarcane supplied by the members, shall be as fixed by the Board of Directors every year. The Board of Directors will fix the price according to the constitution, the object and the bye- laws of the society and after taking into consideration the financial transactions and conditions of the year. The bye-law the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercise of power under the bye-law is the State Advised Price. It applies uniformly to all cane growers irrespective of whether they are members or nonmembers and whether they are in reserved area or outside it. To confine it to the members as they having entered into agreement and being members of the cooperative societies are bound by it is ignoring the entire price mechanism. Nowhere in the country the State Advised Price is fixed for one class of growers only. In absence of any material to show that the fixation by the Government was one sided or with a view to exploit the cane growers the submission that it did not apply to non-members cannot be accepted. The order does not make any distinction between members and non-members. Nor does it visualise separate mechanism for price fixation for the two. The price is fixed, may be, by the Board of Directors or by the State Government under bye-laws but the prices are for the reserved area. The Central Government did not fix any maximum price obviously because the conditions in the agricultural sector differed from State to State. Therefore, it having fixed a minimum price expects the State to offer remunerative price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... empower the State Government to fix the price for cooperative society does not render it bad. If the price fixed by the Government is good for members of cooperative society who are as much cane growers as nonmembers then there is no reason to hold that such price was bad or it operated unreasonably for non- members. Zoning has been resorted to in the State to regulate the supply of cane to various factories on equitable basis. It is a well established feature in the country. Once a zone is reserved for a factory the cane grower has an obligation to supply cane to the factory and the factory has a corresponding obligation to lift the cane from the field, crush it produce sugar and pay to the grower not only the minimum price but also share the profit with him. 23. In the affidavit filed by the Dy. Secretary of the State it has been explained that while forming the zones for the sugar factories besides capacity and requirement of sugarcane to the sugar factory the physiological nature of sugarcane is also taken into consideration. It is stated that crop of sugarcane is a perishable commodity and it has to be crushed at the earliest after its harvesting for which the optimu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cane growers by offering them lower price. It has been pointed out that nearly 80% to 95% sugar factories are in the cooperative sector but some of them have better cane growing areas coupled with better and efficient functioning of the factory. They are in a position to offer better price as compared to other factories which are economically weak and are in difficulty. What is clear from these affidavits is that zoning is beneficial to the cane growers and it has been resorted not only to ensure that the regular cane supply is available to sugar factories but also to protect the cane growers who may otherwise have been seriously affected. 24. Having discussed the pricing of sugarcane, the near similarity between members and nonmembers of a cooperative society qua supply of cane and payment of price, the nonfeasibility of hearing every individual grower by the Committee before fixation of the price of cane and applicability of uniform rate of cane in the reserved area both for members and non-members it may now be examined whether supply of cane by the cane growers under the Zoning Order issued by the State of Maharashtra is a compulsory sale within meaning of clause (f) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one, it should be a sale of an essential commodity and second that such sale must be in compliance with an order with reference to sub-section (2)(f) of Section 3, the relevant part of it reads as under:- S.3. Powers to control production, supply, distribution, etc., of essential commodities (1)........ (2) Without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may provide (a) (b) (C) (d) (e) (f) for requiring any person holding in stock, or engaged in the production, or in the business of buying or selling, of any essential commodity, (a) to sell the whole or a specified part of the quantity held in stock or produced or received by him, or (b) in the case of any such commodity which is likely to be produced or received by him, to sell the whole or a specified part of such commodity when produced or received by him, to the Central Government or a State Government or to an officer or agent of such Government or to a Corporation owned or controlled by such Government or to such other person or class of persons and in such circumstances as may be specified in the order. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e scheme of Section 3(2) nugatory. What is contemplated by Section 3(2)(f) is a specific order. It applies in those cases where any essential commodity is directed to be sold or parted with in pursuance of an order of the Government. It has no application to supply in a reserved area. Further under clause (5) of Zoning Order the cane under orders of the Director can be supplied to other factories. The provision completely demolishes the argument of compulsory sale. 28.What was vehemently urged by Dr. Dhawan, was that the invidious pricing system resorted to by the sugar factories which were indebted to State Government resulted in forcibly drawing such cane growers who were not members of any cooperative society, therefore, it was contrary to the statutory equitable pricing system consequent to the compulsory sale under the Act. It was urged that the fixation of price was irrational and unfair as it had no bearing or relation to the yield of the crop or to the predicament of the farmer. The learned counsel vehemently submitted that any pricing resorted to either by the cooperative societies or by the State Government solely and exclusively in relation to the management of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der directing a cane grower to supply its cane to a factory in whose reserved area it falls, the real nature of supply was a compulsory sale as visualised in Section 3(2)(f). It was attempted to be supported by clauses (6)(a), (6)(b), (6)(c) of the 1966 Order and clauses (3) and (1) of the State Order. It was urged that even though compulsory supply has to be made by operation of different provisions of the two orders yet it was in nature of contract of sale under compulsion. Reliance was placed on Andhra Sugars Ltd. Anr. Etc. v. State of Andhra Pradesh Ors. (1 968) 1 SCR 705 and Vishnu Agencies (Pvt.) Ltd. Etc. v. Commercial Tax Officer Ors. Etc. (1978) 2 SCR 433. The learned counsel submitted that since the Order was specific both in letter and intent and it was clear from the schedules that all growers could supply cane only to an identifiable sugar factory the necessary inference that arose was that it was a compulsory sale and, therefore, the respondents were entitled for a market price under Section 3(3)(c). Help was also taken from Shri Malaprabha (supra) and it was urged that where there were general orders which identified the seller and the buyer and both were aware ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r law. But every compulsion does not bring about a compulsory sale. Similarly the other decision in Vishnu Agencies (supra) was concerned with determining whether supply made under statutory order was sale for purposes of levy of sales tax. 30.The dual pricing system, one, for members and other for nonmembers or the option to non-members to sell to the factory of their choice may be negative of the zoning concept and may effect the cooperative movement in the State. Dr. Singhvi may be right that even before Zoning Order was issued the cooperative movement was there and the benefits that a member of the society derives may not result in affecting the system largely but any policy which has the tendency of shaking the system rudely must be avoided. 31.Consequently the first two directions issued by the Full Bench on price fixation cannot be upheld. As regards third direction it has been explained in the affidavit filed in pursuance to order dated 24th February 1995 which substantially remains uncontroverted that the deductions under bye-law 65 are made for the Chief Minister s Relief Fund, Small Saving Schemes, Cane Development Fund, Vasantdada Sugar Research Institute, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... day in the cooperative sector. May be because as claimed by the State it is vitally concerned in production of sugar and is, therefore, investing substantial funds, nearly 95% in setting up of the units. May be as suggested by the respondents that the public funds thus transferred for social welfare is being siphoned off by vested interests. May be as argued that the loss is more paper work than truth as in fact it has resulted in giving rise to what has come to be known as powerful political sugar lobby in the State of Maharashtra. But these are matters more political than legal, the remedy for which may not be in courts. Even otherwise it is not possible to identify the evil, both, for paucity of material and discipline, of restraint, of keeping away rather than delving in such hazardous zone. All the same from the chart filed along with the affidavit in C.A. No.523 of 1989 it appears the factories having better recovery have been permitted to pay lower price as compared to the factories the recovery of which is lower. For instance at item Nos.14 and 15 the two karkhanas, Ashok and Dayaneshwar, arc shown to have recovery of 10.21% and 10.53% respectively. Yet the price paid in 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from other zone as well but no similar right has been given to cultivators. For better appreciation the entire clause is set out : 5. Regulation of supply of Sugarcane.- (1) A permit officer may allow a sugar factory to purchase cane or to accept supplies of cane from cane growers from areas other than the area reserved for it under clause 3 if he is satisfied that any of the following circumstances exist namely: (a) In the event of production of cane in the area reserved for the factory being not adequate for enabling it to reach optimum level of crushing; (b) In the, event of surplus production of cane in the areas reserved for other factories which those factories are not able to crush during the crushing season. (c) In the event of stoppage of nearby sugar factory due to mechanical break down, labour unrest, lock-out or any other reason. (d) In the event of cane grower or cane growers from the area reserved for a particular factory declining to supply cane to the said factory on account of any of the following reasons, if found justified by the Permit Officer (i) Non-payment or late payment of cane price by the sugar fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out, before the next crushing season commences, by an Expert Committee comprising of economists and financial experts well versed in price fixation, particularly in agricultural sector. This exercise has become imperative after the enforcement of Zoning Order. In fact when Zoning Order was introduced the State at that time should have got these aspects examined. However, the price equation since 1984 has undergone tremendous upsurge. The escalation is manifold. Benefit of higher price of sugar must percolate to growers as well. Therefore, the Committee may examine, (a) if the fixation of State Advised Price uniformly for the entire State as it is being done in other States, or at least separately for different zones, as the normal recovery in the zones varies, would be more feasible; (b) if the additional price worked out in the manner indicated in Schedule 11 of Control Order of 1966 is more advantageous and beneficial to the growers. If it be so it may opt for the same as it would avoid tedious exercise by the Ministerial Committee and have the benefit of uniformity; (c) The Committee may further examine whether ₹ 600/- which has been paid by the factori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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