Whereas It is expedient, for the purpose of assuring to sugarcane growers
a fair price for their produce, to regulate the price at which sugarcane
intended to be used in the manufacture of sugar may be purchased by or
It is hereby enacted
West Pakistan Sugar Factories Control Act, 1950 and Sugarcane Act, 1934
do not operate to exclude applicability of the Punjab Agricultural Produce
Markets Ordinance, 1978.
l. Short title, extent
and commencement.--(I) This Act may be called the Sugarcane Act, 1934:
(2) It extends to the
whole of Pakistan.
(3) This section shall
come into force at once; the remaining sections of this Act shall come
into force in any Province on such date as the Provincial Government may,
by notification in the Official Gazette; appoint in that behalf.
this Act, unless there is anything repugnant in the subject or context
area" means any area specified in a notification issued
under sub-section (1) of section 3;
After sub-section (1), following clauses shall be inserted namely:
Commissioner" means any officer specially appointed by the
Provincial Government to perform the functions of a Cane Commissioner
under this Act and such other duties as may be prescribed;
grower" means a person who cultivates cane either by himself
or by members of his family or by tenants or by hired labour and who is
not a Cane Growers' Co-operative Society;
Growers' Co-operative Society" means a society registered
under the Co-operative Societies Act, 1911, one of the objects of which
is to sell cane grown by-its members;
means the Collector of a district, and includes a Deputy Commissioner
and any officer specially appointed by the Provincial Government to perform
the functions of a Collector" under this Act;
Season" means the period commencing on the fifteenth day
of October in any year and ending on the thirteenth day of June of the
next following year";
Punjab Act, IX of 1943.
means any premises (including the precincts thereof) wherein twenty or
more workers are working or were working on any day of the preceding twelve
months and in any part of which any manufacturing process connected with
the production of sugar is being carried on or is ordinarily carried
on with the aid of power; and
In clause (2), the words "and" shall be omitted.
Punjab Act IX of 1943.
After clause (2), the following clauses shall be deemed to be inserted
of a factory" means the person who has ultimate control
over the affairs of a factory:
Provided that here the
affairs of a factory are entrusted to a managing agent such agent shall
be deemed to be the occupier of the factory;
means prescribed by rules made under this Act;
area'; means an area specified in order issued under section
means any form of sugar containing more than ninety per cent of sucrose.
After section 2 of the said Act, the following sections shall be deemed
to be inserted, namely:
and extension of a factory: No person shall commence the construction
of any building intended to be used as a factory or any extension of the
plant of an existing factory which is likely to increase its capacity
for crushing cane unless he has been granted a licence by the Provincial
Government on such terms and conditions as may be prescribed.
for crushing cane, -- ( l} After such date as the Provincial
Government may by notification in the Official Gazette specify in this
behalf, no cane shall. be crushed in a factory unless the occupier thereof
has obtained a licence authorizing him so to do.
(2) Conditions of licences
for crushing cane - A licence granted under sub-section (1) shall be subject
to such terms and conditions as the Provincial Government may impose in
respect of all or any of the following matters, namely:-
(a) membership of organization
of the sugar industry recognised by the Provincial Government the main
object of which is to regulate the sale of sugar;
(b) the price above or
below which the terms and conditions on which and the persons to whom
or the organizations for which or through whose agency, and variety, grade
or quantity of sugar produced in the factory may be sold;
(c) the manner in which
sugar produced in the factory shall be graded, marked, packed or stored
(d) the minimum quantity
of the cane that shall be purchased during the crushing season; and
(e) such other matters
as may be prescribed, including conditions of labour.
of manager.-(l) No factory shall commence to crush cane unless
the occupier sends to the Collector a notice in the prescribed form appointing
a person to be the manager of the factory for purposes of this Act and
the rules made there under.
(2) Any person so appointed
shall deposit as security such amount not exceeding one thousand rupees
as may be prescribed.
(3) Whenever another
person is appointed as manager, the occupier shall send to the Collector
a written notice of the change within fourteen days from the date on which
the new manager assumes charge.
(4) If no person has
been appointed manager of a factory under this section, or if the person
appointed as manager does not manage the factory, or has not made the
requisite deposit, found acting as manager, or, if no such person is found,
the occupier himself shall be deemed to be the manager of the factory
for purposes of this act and the rules made there under"
Punjab Act IX of 1943
of controlled areas, and fixing of prices.- (I) The Provincial
Government may, by notification in the official Gazette, declare any area
specified in the notification to be a controlled area for the purposes
of this Act.
(2) The Provincial Government,
may, by notification in the official Gazette, fix a minimum price or minimum
prices for the purchase in any controlled area of sugarcane intended for
use in any factory.
(3) The Provincial Government
may, by notification in the official Gazette, prohibit in any controlled
area the purchase of sugarcane intended for use in any factory otherwise
than from the grower of sugarcane or from a person licensed by the Provincial
Government to act as a purchasing agent.
After section 3, the following sections shall be deemed to be inserted
of quantity of cane required by factory--(l) The Provincial Government
may by order require the occupier of any factory to submit to the Cane
Commissioner, on or before the prescribed date, an estimate in the prescribed
form of the quantity of cane which will be required in the factory during
such crushing season as may be specified in the order.
(2) The Cane Commissioner
shall examine every such estimate and shall publish the same in the prescribed
manner with such modifications, if any, as he may think fit.
(3) An estimate pub1ished
under sub-section (2) may be revised by the prescribed authority.
of reserved area.-(l) The Cane Commissioner, may, after consulting
the occupier of the factory and after considering any objections that
may be raised, issue an order declaring any area to be a reserved area
for the supply of cane to a particular factory during the ensuing crushing
season, and may likewise at any time cancel such order or alter the boundaries
of an area so reserved:
Provided that unless the parties concerned consent no portion of an area
reserved for one factory shall, so long as the agreements entered into
by occupier of such factory with the cane growers in such area for the
supply of cane remain in force, be included within reserved area of another
(2) Any person aggrieved
by an order of the Cane Commissioner under sub-section (1) may appeal
there from to the prescribed authority.
3-C. Survey of
reserved area.--(l) The Provincial Government may order a survey
to be made of the area reserved for a factory under section 3-B and may
recover the cost of such survey from the occupier of the such factory.
(2) Every such survey
shall be made by such officer as the Provincial Government may, by general
or special order, appoint in this behalf.
(3) Every person owning,
or occupying, land in any area in respect of which a survey is being made
shall afford the officer making the survey such assistance for making
the survey as may be prescribed.
(4) Any amount due from
the occupier of a factory under sub-section (1) shall be recoverable from
such officer as an arrear of land revenue.
of cane, in reserved area. -- (1) A cane grower or a Cane Growers'
Co-operative Society in a reserved area may offer to supply to the occupiers
of the factory for which the area is reserved, cane grown by the cane
grower or by the members of such Cane Grower's Co-operative Society, as
the case may be, not exceeding the quantity, if any, prescribed for such
grower or Cane Growers' Co-operative Society.
(2) The occupier or manager
of a factory for which an area is reserved shall enter into an agreement
to purchase the cane offered in accordance with subsection (l):
Provided that he shall not enter into an agreement to purchase cane from
a person who is a member of Cane Growers' Co-operative Society.
(3) Except with the permission
of the Provincial Government, cane grown in a reserved area shall not
be purchased in such area by a purchasing agent, or by any person other
than the occupier of the factory for which such area has been reserved.
(4) Cane grown in a reserved
area shall not be sold by any person other than cane grower or a Cane
Growers' Co-operative Society:-
Provided that a cane grower or a Cane Growers' Co-operative Society may
deliver cane intended for use in factory through another cane grower or
through a carrier.
(5) If the Provincial
Governments are satisfied that there is likely to be in the area reserved
for a factory any quantity of cane available for sale to the occupier
of the factory in excess of the quantity for which he is required to enter
into agreement, the Provincial Government may, during the crushing season,
direct that cane shall not be purchased outside the reserved area until
the occupier of the factory enters into agreement to purchase all the
cane offered to him in the reserved area:
Provided that such prohibition shall not apply in respect of cane for
the supply of which agreements in writing have been entered into before
such direction was issued.
--(l) If any person commences the construction of a new factory or if
the occupier of a factory makes any extension of the plant of the factory,
in contravention of the provisions of sub-section (I) of section 2-A,
he shall be punishable with fine which may extend to five thousand rupees.
(2) If the occupier of
a factory crushes cane without obtaining a licence under section 2-B he
shall be punishable with fine which may extend to five hundred rupees
for each day on' which cane is crushed at the factory without such licence.
(3) if the Provincial
Governments are satisfied that there has been a breach of the conditions
of a licence under section 2-B, they may refer the same for advice to
a Tribunal constituted in the prescribed manner, and on the advice of
such Tribunal, cancel the licence and impose on the occupier of the factory
concerned any one or more of the following' penalties, that is to say:--
(a) if the breach consists
of a failure or to sell sugar in accordance with the conditions of the
licence, the penalty may extend to an amount calculated at fifty paisas
per maund of the sugar produced or sold in contravention of such condition;
(b) if the breach consists
of the wilful failure to purchase a minimum quantity of cane, the penalty
may extend to an amount, calculated at a rate not exceeding six paisas
per maund of cane which he has failed to purchase; and
(c) in any other case
of a breach of a condition or conditions of the licence, the penalty shall
not exceed the sum of five thousand rupees.
(4) If the occupier or manager
of a factory:
(a) intentionally fails
to enter into agreement as required by sub- section (2) of section 4-D;
(b) intentionally fails
to purchase cane in accordance with the terms of an agreement entered
into sub-section (2) of section 3-D; or
(c) purchases cane outside
a reserved area in contravention of the provision of sub-section (5) of
section 3-D; or
(d) knowingly enters into
an agreement with a cane grower, who is a member of a Cane Growers' Co-operative
Society in contravention of the provisions to sub-section (2) of section
3-D, he shall be punishable with fine which may extend to two thousand
(5) If any person knowingly
purchases or sells cane in a reserved area in contravention of the provisions
of sub-section (3) or sub-section (4) of section 3D, he shall be punishable
with imprisonment which may extend to six months or with fine which may
extend to two thousand rupees or with both.
(6) Any person contravening
any of the provisions of this Act for which no penalty is otherwise provided
shall be punishable with fine which may extend
to two thousand rupees.
(7) Any penalty imposed
on the occupier of a factory under sub-section (3) shall be recoverable
from such occupier as an arrear of land revenue.
3-F. Tax on sale
of cane.--(l) The Provincial Government may by notification in
the official Gazette impose a tax on the sale of sugarcane at a rate not
exceeding six paisas per maund or at a rate not exceeding five per cent,
of the sale price and may, by like notification, exempt from such tax
sale in any area, or any class or classes of such sales to be specified
(2) if any agreement for
the sale of cane is entered into before the imposition of a tax under
this section, the seller, will be entitled to recover from the buyer in
addition to and as part of the contract price, the aIJ10unt of such tax
to which the seller may be liable.
(3) Any sum payable under
this section shall be recoverable as an arrear of land revenue.
Punjab Act IX of 1943
4. Previous publication
of notifications under section 3.--Not less than thirty days
before the issue of any notification under sub-section (I) or sub-section
(2) of section 3, the Provincial Government shall publish in the official
Gazette and in such other manner (if any), as it thinks fit a draft of
the proposed notification specifying a date on or after which the draft
will be taken into consideration and shall consider any objection or suggestion
which may be received from any person with respect to the draft before
the date so specified.
5. Penalty for
purchase of sugarcane in contravention of notification under section 3.--
Whoever in any controlled area purchases any sugarcane intended for use
in a factory at a price less than the minimum price fixed therefor, by
notification under sub-section (2) of section 3 or in contravention of
any prohibition made under sub-section (3) of section 3 shall be punishable
with fine which may extend to two thousand rupees.
6. Sanction for
prosecution under this Act.---No Court shall take cognizance
of any offence punishable under section 5 except upon complaint made by
order of, or under authority from, the, District Magistrate.
7. Power of Provincial
Government to make rules.-.(I) The Provincial Government may,
by notification in the. official Gazette, make rules for the purpose of
carrying into effect the objects of this Act.
(2) In particular and
without prejudice to the generality of the foregoing power such rules
may provide for:--
(a) the carrying out of
inquiries preliminary to the exercise of the powers conferred by section3;
(b) establishing Advisory
Committees for any purpose connected with procedure of such Committee;
(c) the issue of licences
to purchasing agents; the fees for such licences and the regulation of
the purchase and sale of sugarcane by and to such agent;
(d) the organization of
growers of sugarcane into societies for the sale of sugarcane to factories;
(e) the authorities by
which any functions under this Act or the rules made there under are to
be performed; and
(f) the records, registers
and accounts to be maintained for ensuring for the compliance with provisions
of this Act;
Punjab Amendment: In section 7, in subsection (2) in
clause (e) the word "and" shall be omitted.
After clause (f), the following clauses shall be deemed to be
(g) the issuing and
renewal of licences, the forms and conditions of licences, the periods
for which they are to be issued and the fee to be charged there-for;
(h) the amount of deposit
under sub-section (2) of section. 2-C;
(i) the procedure to be
followed in making a survey under section 3-C the manner of calculating
the cost of such survey and the powers to be exercised and the duties
to be performed by the officer making the survey;
( j ) the form in which
and the date by which an offer under sub- section (l) of section 3-D,
shall be made; and
(k) the form in which,
the date by which and the terms and conditions subject to which, an agreement
under sub-section (2) of section 3-D shall be entered into;"
(3) In making any rule
under sub-section (I) or under clause (c) or clause (f) of sub-section
(2), the Provincial Government may provide that a breach of the rule shall,
where no other penalty is provided by this Act be punishable with fine
not exceeding two thousand rupees,
Punjab Amendment : In sub-section (3), the words, brackets
and letters "under clause (c) or clause (f)” shall be deemed
to be omitted.
Punjab Act lX 0/1943
8. Power as Provincial Government to make rules.-- The
Provincial Government after previous publication may, by notification
in the official Gazette, make rules providing for the exemption of factories
or any class of factories from the provisions of this Act.