|The Sugar Factories
Control Rules, 1950
- Short title, extent and commencement:--(l) These
rules may be called the Sugar Factories Control Rules, 1950.
(2) They shall come into force at once.
- Definitions:--1n these rules unless there is anything
repugnant in the subject or context:--
(i) "Act" means the Sugar Factories Control Act, 1950 (XXII)
(I-a) "Sugarcane (Development) Cess means the Sugarcane (Development)
Cess levied under section 12 of the Finance Act, 1964.
(ii) "Inspector" means any person appointed under section
7 of the Act to perform the duties of an Inspector.
(iii) "Occupier of a factory” means the person who has ultimate
control over the affairs of a factory.
(iv) "Notification" means a Notification published in the
(v) “Purchasing Agent" includes any person, not being the
grower or has authorised representative or Cane-Growers' Co-operative
Society or a paid employee of the occupier of the factory not employed
on commission basis, who purchases, supplies, delivers, weighs or pays
(vi) "Purchasing Centre" means_ any place at which cane is
purchased, supplied, delivered or paid for and includes such portion
of the premises of the factory at which any of the co-operations to
(vii) "Weigh bridged" means any mechanism used to weigh cane
and includes any weighbridge maintained or used by the occupier, or
purchasing agent or by any person acting on his behalf.
(viii) "Year" means the agricultural year commencing on the
1st day of July and ending on. the 30th day of June next following.
- Sugarcane Control Boar: --
(l) The Board shall consist of the following Members namely:
(i) The Director of Agriculture;
(ii) The Director of Industries;
(iii) The Cane Commissioner;
(iv) One representative of each Sugar Factory in the Province concerned;
(v) One person nominated by Government from among the growers of sugarcane
of each area, where a sugar factory is located.
(2) The Board shall in addition to the powers and duties conferred or
imposed upon it by the provisions of the Act, advise the Provincial
Government on all matters, connected with the sugar industry of the
Province concerned that may be referred to it by the Provincial Government.
(3) The meetings of the Board shall be held at such places and on such
dates as the Chairman may fix.
(4) Notice in writing of all meetings shall be circulated by the Chairman
to all members not less than one week before the date fixed for meeting,
except in urgent cases.
(5) The term of appointment of the Board and its members excepting the
first Board which may come into existence any time shall normally be
one year, from the 1st July till 30th June next year, unless otherwise
the Provincial Government directs.
(6) When the place of a member nominated to the Board becomes vacant
resignation or death of such member or by an order of Provincial Government
such member ceases to be a member. The Provincial Government shall nominate
a new member to fill the vacancy, subject to the provisions of sub-rule
(2), and such new member shall hold office for the unexpired period
of term of office of the member in whose place he has been nominated.
(7) The procedure in Appendix I to these rules shall be followed at
meetings of the Board.
- (l) The following Officers shall be ex-officio Inspectors within
the limits of their respective jurisdiction:-
(i) The Director Food.
(ii) The Cane Commissioner.
(iii) All Additional Cane Commissioners.
(iv) All Deputy Directors Food.
(v) All Assistant Cane Commissioners.
(vi) Section Officer (Sugar), Government of Province concerned, Food
(2) An Inspector may, with such assistance, as he deems necessary:--
(i) enter any factory or any other place appurtenant therewith which
is or which he has reasons to believe, is used as purchasing centr7
(ii) examine the weighbridges or scales or weights used, kept or possessed
for weighment Or purchase of cane at •any such place;
(iii) cause any vehicles carrying cane to be weighed or reweighed in
. his own presence;
(iv) examine the registers maintained at any factory or purchasing centre
or at any place appurtenant thereto in respect of purchases/carriage
of cane; payments made to the growers and Sugarcane (Development) Cess
due from the mills or deposited into the Government Treasury;
(v) examine any person or record statement of any person for the proper
checking of collections and payments of the Sugarcane (Development)
Cess by a factory;
(vi) examine and check accounts pertaining to the manufacturer of sugar
and recovery percentages of sugar;
(vii) issue from time to time such instructions as may be necessary
to ensure equitable purchase or cane ; provided that such instructions
shall only be issued for reasons to be recorded in writing and if they
have not been previously approved by the Cane' Commissioner, they shall
be submitted to him f9ithwith for confirmation;
(viii) issue from tithe to time instructions to ensure timely payment
of the Sugarcane (Development) Cess due to Government, and
(ix) exercise in good faith such other powers as may be conferred on
him under any law for the time being in force or as may be necessary
for carrying out the purpose of the Actor these rules.
- Intimation regarding starting of crushing: -- The occupier of the
factory will send a notice of starting crushing one clear month in advance
to Cane Commissioner in Form 2 Appendix II.
- Estimate of quantity of cane required by factories:--
(1) The occupier of a factory shall submit to the Cane Commissioner
on or bet ore 1st May each year, ,in Form 3, Appendix II, an estimate
of the quantity of cane which will ,be required by the factory during
the crushing season next following the ensuing crushing season.
(2). The Cane Commissioner shall, after consulting the Board, publish
the same with such modification as may be necessary within a month of
receipt of the estimate, in the official Gazette arid at the office
of the District in which the factory is situated.
(3). The Provincial .Government may on its own motion or on any application
for revision' file within a month• of the publication' of the
estimate, revise it.
- Declaration. of reserved areas:--
(l) In declaring reserved areas under section 10 (1) of the Act the
Cane Commissioner may take into considerations:-
(a) the distance of the factory from the area proposed ~o be reserved;
(b) facilities for transport to the factory from the area proposed to
(c) whether the area has previously supplied cane to the said factory;
(d) previously existing zoning arrangements among the factories; and
(e) the estimated quantity of cane required by the factory.
(2) An order of the Cane Commissioner declaring any area to be reserved
for any particular factory or altering the boundaries of an already
reserved or canceling any previous order declaring an area to be reserved
shall be communicated to the occupier of the factory concerned and shall
be published in the official Gazette and at the office of the Collector
of the district in which the area is situated and also at the gate.
of the factory.
- Survey of reserved area and grower's registers: --
(1) When an area has been reserved, the Cane Commissioner may cause
a survey of the sugarcane in it to be made in Form 4, Appendix II and
may deliver a copy of the survey report to the occupier of the factory
(2) The cost of the survey may be assessed at one rupee for every 20
acres of sugarcane surveyed and shall be payable by the occupier of
the factory within a month of the delivery of the form referred to in
(3) The occupier of a factory shall, after such local verification as
he considers, necessary, prepare a register in Form 3, Appendix II,
as required under section 12 of the Act to be called the Grower's Register,
and it shall be open to inspection by every cane grower of a reserved
(4) Any grower having or claiming to have, grown sugarcane in reserved
areas, may apply to the occupier of the factory for the correction of
entry in or in the addition of a new entry to the Grower's Register.
The occupier shall keep a record of these applications.
(5) The occupier of the factory shall, after such enquiry as he considers
necessary, pass orders on the application within a fortnight of its
receipt and a true copy of such orders shall be supplied to the applicant.
An appeal from the order of the occupier sha11 lie to the Revenue Extra
Assistant Commissioner within whose jurisdiction the land in question
is situated and his decision shall be final.
(6) The occupier of a factory shall give a copy of the entries in the
grower's register on application made before the 15th December in any
year to any person.
(7) The Grower's Register shall be preserved by the occupier of a factory
for a period of two years following the crushing season to which it
- Purchase of cane grown in a reserved area:--
(1) The occupier of a factory shall estimate or cause to be estimated,
by thirtieth September, the quantity of sugarcane with each grower enrolled
in the Grower's Register and shall submit the estimate to the Cane Commissioner
who may, after such enquiries as he considers necessary, modify the
estimates and cause them to be published in such manner as he may direct.
(2) A Cane Grower or a Cane-Growers' Co-operative Society in a reserved
area may offer in Form 6, Appendix II, by the first October each year
to supply during the crushing season to the occupier for the factory
for which the area has been reserved, cane not exceeding in the case
of cane growers the quantity estimated in accordance with sub-rule (1).
(3) The occupier of the factory for which the area is reserved shall
enter into an agreement with the Cane Grower or the Cane-Growers' Cooperative
Society, as the case may be, in Forms 7 and 8, respectively, or in any
other form approved by the Cane Commissioner, within a month of the
offer mentioned in sub-rule (2).
(4) The occupier of a factory shall spread the purchases made in the
reserved area in an equitable manner, and shall in the case of cane
growers of the reserved area make purchases of cane only after issuing
requisition slips. In order to comply with this rule, the occupier shall
cause identification cards to be distributed to all cane growers of
the reserved area to whom requisition slips will be issued, and shall
maintain a record of the same.
(5) Requisition slips and identification cards to members of a Cane¬
Growers' Co-operative Society shall be issued by the Society.
(6) In case of a dispute whether a particular system adopted for the
purchase of one grower in the reserved area is equitable or not the
dispute may be referred to the Cane Commissioner whose decision shall
- Declaration of an assigned area and purchases of cane in an assigned
(1) An order of the Cane Commissioner declaring an area to be assigned
for a factory or prescribing the quantities of cane to be purchased
by its occupier in the assigned area, modifying or canceling any previous
orders, shall be communicated to the occupier of the factory and shall
be published at the office of the District in which the area is situated,
and at such centers in assigned areas as the Cane Commissioner may direct.
(2) An appeal against an order of the Cane Commissioner under section
14 of the Act may be made to the Provincial Government within one month
of the publication of such order at the Office of the Deputy Commissioner.
(3) The occupier of a factory for which an area has been assigned shall
by the 16th October each year for any crushing season enter into agreement
of Forms 7, 8 or 9 of Appendix II, as the case may be, with cane growers
or Cane ¬Growers' Co-operative Societies or purchasing agents for
the purchase in the assigned area of such quantity of cane as may be
fixed by the Cane Commissioner.
(4) If such an agreement is entered into with a purchasing agent, the
latter shall enter into similar agreements, in Form 10, Appendix II,
with cane growers or Cane-Growers' Cooperative Societies in the assigned
area in respect of all the cane which he has undertaken to supply to
the occupier of the factory.
(5) Purchase of cane from growers in the assigned area shall be spread
in an equitable manner and shall be made only after the issue of requisition
slips. The purchaser shall cause identification cards to be distributed
to the cane grower's of the assigned area who have entered into the
agreements, and he will keep a record of the requisition slips and identification
cards issued to the cane growers.
(6) The Cane Commissioner will lay down the system of purchase to be
adopted by the occupier of a factory, or his employees or the purchasing
agents in the assigned area.
- General provision regarding purchases of cane:---
(l) No person shall transfer or abet the transfer of a requisition slip
for the cane grower to another person, with the object of enabling cane
other than that belonging to the grower for whom the requisition slip
has been issued to be sold to a factory.
(2) No person shall accept or obtain, or agree to accept or attempt
to obtain, from any person for himself as gratification or consideration,
bonus, set¬-off, luck money, or any other such payment whatever,
other than legal remuneration, as a motive or reward for weighing or
purchasing cane, or making payment therefore, or for issuing requisition
slips or for showing or for bearing to show in connection with the weighment
or purchase of supply of or payment for cane in favour or disfavour
to any person
(3) No person shall falsely represent himself as a grower of cane, or
as authorised by such grower to deliver cane on his behalf for as a
person duly authorised by the grower to receive payment on his behalf.
(4) The occupier of factory or a purchasing agent shall alter the location
of, or establish a purchasing centre at a particular place for the supply
of cane to the factory, if so directed by the Cane Commissioner after
consultation with the Board.
(5) Except with the precious approval of the. Cane Commissioner no occupier
or purchasing agent shall purchase cane consigned to them by a cane
grower from the place where a purchasing centre has been or has been
ordered to be established under sub-rule (4).
(6) An occupier or a purchasing agent who opens a purchasing centre
shall send intimation thereof within 24 hours of the start of operations
to the Collector and to the Inspector within whose jurisdiction such
purchasing centre is situated.
(7) If a purchasing centre is opened with the intention of purchasing
cane for a period of less than 14 days, the occupier or purchasing agent
concerned shall (i) affix a notice at the purchasing centre at the time
of opening, showing the probable duration of the period during which
the purchasing centre is to remain open, and (ii) send intimation of
such duration at the same time to the Collector and to the Inspector
within whose jurisdiction the purchasing centre is situated.
(8) If a purchasing centre is opened with" the intention of purchasing
cane for a period of 14 days or more, or if it remains open for a period
of 14 days or more, the occupier, or purchasing agent shall, at least
three days before he closes the purchasing centre either permanently,
or except, as provided in sub-rule (9) temporarily:--
(i) affix a notice to that effect at the purchasing centre specifying
clearly the date on which the centre is to be closed; and
(ii) sending intimation of the' date of the proposed closure to the
Collector and to the Inspector within whose jurisdiction the purchasing
centre is situated.
(9) If a purchasing centre has to be closed owing to break-down of
machinery or other causes necessitating an abrupt but temporary suspension
of operation, the occupier or purchasing agent concerned shall:-
(i) cause to be posted immediately at the purchasing centre concerned
notices indicating the probable duration of the suspension;
(ii) cause the suspension of purchase to be otherwise advertised as
widely as possible;
(iii) send intimation thereof immediately to the-Cane Commissioner and
to the Inspector within whose jurisdiction the purchasing centre is
(iv) purchase all requisitioned cane brought within 12 hours of posting
of notices under clause (i). In such cases the Collector may at his
discretion, and if he is satisfied that the closure - was unavoidable,
grant exemption from the three days' period referred to in sub¬-rule
(10) An occupier and a purchasing agent shall:--
(i) cause a list to be put up at each purchasing centre showing the
names of the persons employed by him for making weighments, purchases
and payments; and for arranging the cane purchases at that centre;
(ii) cause such lists to be maintained up-to-date;
(iii) send a copy of the names, and of full particulars about the persons
whose names are entered in these lists within 24 hours of their employment,
to the Collector and to the Inspector within whose jurisdiction such
purchasing centre is situated;
(iv) give each person employed for making weighments, purchases and
payments a written authority to that effect; and
(v) not knowingly employ any person who has been previously convicted
for breach of any of the provisions of the Act or these Rules, or has
been sentenced to imprisonment for a period exceeding six months, without
the permission of the Cane Commissioner, for making weighment, purchases
(11) No person who is not authorised in accordance with sub-rule (10)
shall make or supervise weighments, purchases or payments at any purchasing
centre on behalf of an occupier or purchasing agent.
(12) A purchasing agent shall actively participate in, and if possible
personally supervise the work of purchase of cane at least at one of
the purchasing centres where purchases are made by him or on his behalf.
(13) A purchasing agent shall produce his licence, and a person employed
by an occupier or a purchasing agent for making weighments, purchases
or payments shall produce the written authority given to him under sub-rule
10 (iv) of this rule of demand by the Inspector.
- Licensing of purchasing agents:---
(l) An application for a licence to act as a purchasing agent under
the Act shall be made in Form II, Appendix II, to the Cane Commissioner
stating the district in which he wishes to purchase cane.
(2) Such application shall be duly stamped and accompanied by (a) a
treasury receipt showing that licence fee of Rs. 50 has been deposited
in the local Government Treasury (b) a nomination from the occupier
of the factory concerned in Form 12, Appendix II, and (c) a declaration
that the applicant does not hold a licence for any other district.
(3) The applicant shall deposit with the factory for which he desires
to act as purchasing agent, as security, a sum of rupees one thousand
in cash or Government securities of the face value of rupees one thousand
or Post Office Cash Certificates of the present encashment value of
rupees one thousand, or a bond of hypothecation of landed property worth
rupees two thousand, and such security shall be maintained through the
period such works as a purchasing agent and for six months thereafter.
Government will have the first charge on such or property for the recovery
of any fine or compensation due from the purchasing agent or his employees
under the Act or under these Rules, provided that, for reasons to be
recorded in writing, and with the consent of the occupiers concerned,
the Cane Commissioner may dispense with the deposit of security or permit
the deposit of such smaller security as he thinks proper. In such cases,
the occupier shall execute a bond holding himself liable for any sums
recoverable from the Purchasing agent by way of fine under the Act,
or under these rules, or otherwise, up to a limit of Rs. l, 000.
On receipt of application the Cane Commissioner may issue a licence
in Form 13, Appendix 11, if he is satisfied that the applicant:--
(i) is not a minor, or a purdahnashin lady, or an undischarged insolvent,
or a person of unsound mind,
(ii) has not been convicted within the previous two years of an offence
under the Act or these Rules, other than one which is in the opinion
of the Cane Commissioner of a technical nature and not such as to justify
refusal of the licence,
(iii) has not been sentenced to imprisonment for a term exceeding six
months for an offence involving moral turpitude, and
(iv) is not a company, firm or other association of persons:
Provided that the Cane Commissioner may call upon the applicant and
the occupier of the factory concerned to show cause why a licence should
not be refused and may, thereafter, for reasons to be recorded in writing,
refuse to grant a licence to such applicant.
(5) A licence shall remain in force only till the 30th June next following.
It shall be renewed for the year following the said 30th June and for
each subsequent year; on application being made to that effect by the
purchasing agent in writing to the Cane Commissioner granting the licence,
in the same manner and on the same condition as if it were an application
for a new licence. On the expiry of a licence it shall if not renewed,
be returned to the Cane Commissioner who issued it.
(6) A licence will ordinarily permit purchases at only one purchasing
centre, but the Cane Commissioner may at his discretion permit purchases
to be made at not more than three purchasing centres. Separate security
will not be necessary, for the additional centres.
(7) A licence shall be valid only within the local limits of the district
in which it has been granted. If a purchasing agent desires to purchase
cane in a district other than that covered by the licence, an application
to that effect shall be made to the Cane Commissioner for an endorsement
on the licence making it available for such district. Unless there are
valid reasons to the contrary such endorsement shall be made and no
extra payment shall be made therefor.
(8) A licence shall be valid for making purchases on behalf of only
one factory. If a purchasing agent desires to purchase cane for more
than one factory, he shall be required to obtain a separate licence
for each factory. Such licence shall be granted if (i) the Cane Commissioner
is satisfied that the issue of another licence will not contravene the
provision of sub-rule (7), and (ii) the consent in writing of the occupiers
of all factories on whose behalf he already holds licences is produced
before the Cane Commissioner.
(9) A licence of a purchasing agent shall be cancelled by the Cane Commissioner
who issued the licence if (i) he receives an application to that effect
from the occupier of the factory concerned, or (ii) the purchasing agent
is adjudged insolvent or becomes of unsound mind.
(10) A licence of a purchasing agent• may be cancelled, or an
entry of warning made thereon by the Cane Commissioner who issued the
licence. An endorsement on a licence of a purchasing agent may be cancelled
or an entry of warning made on the licence by a Cane Commissioner who
endorses the licence, in such cases, such Cane Commissioner shall send
intimation of the orders passed by him to the Cane Commissioner who
granted the licence for such action as he may deem fit. No order for
the cancellation of a licence, or of an endorsement thereon, or for
the making of an entry of warning of the licence shall be issued, except
for reasons to be recorded in writing after giving an opportunity of
explanation to the purchasing agent, and reasonable notice to the occupier
of the factory concerned. Pending inquiry under this rule, the Cane
Commissioner may suspend a licence, or endorsement thereon, but such
suspension shall not take effect until after the expiry of 72 hours
from the giving of notice thereof to the occupier of the factory concerned.
(11) An appeal shall lie to the Provincial Government from order of
the Cane Commissioner refusing grant of a licence or canceling or suspending
a licence. Such appeal shall be filed within one month of the date of
the Cane Commissioner's order. The order of the Cane Commissioner, if
no appeal is filed within the prescribed period, shall be final.
- Minimum price and weighments:-- (l) An occupier
or a purchasing agent for any person employed by them shall not purchase
cane for a factory or pay for it at a price below the minimum price
fixed under these rule in accordance with section 16 of the Act.
(2) The occupier of a factory or a purchasing agent shall not make any
deduction from the amount due for cane sold to him by a Cane Grower
or a Cane¬ Growers' Co-operative Society except such deduction as
may be prescribed or as the Provincial Government may, by notification,
from time to time allow.
(3) The minimum price payable for cane shall be fixed per standard maund
of 822/7 lb. or as may be notified by Government from time to time.
(4) All transactions in connection with the purchase and supply of cane
shall be made according to the maund of 82, 2/7 lb. or as may be notified
by Government from time to time, and it shall be lawful to use any other
weight in relation to any such transaction.
(5) No cane shall be purchased without actual weighment.
(6) The net weight of cane of cane shall be correctly recorded to the
nearest weighth of a maund
(7) The occupier of a factory or purchasing agent shall permit a representative
of a Cane-Growers' Co-operative Society; or any other person duly authorised
by the Cane Commissioner for the purpose, to watch or check weighments
and to examine the parch is in which weights are recorded.
(8) No scales or weighs shall be used, kept or possessed for the weighment
of cane by or on behalf of, an occupier or a purchasing agent:-
(i) which are incorrect, provided that a weighbridge shall not be
deemed to be incorrect which weights correct to within two per cent
of the correct weight of the consignment actually being weighed, and
cannot be adjusted more accurately, or
(ii) the scale arms of which are not clearly marked on both sides whenever
possible, and are either not accessible to the vendors of cane and their
authorised agent, or are not legible to persons standing near the carts
which are being weighed; or
(iii) which have been disapproved by an Inspector, provided that the
Inspector shall not disapprove scales or weights which comply with the
rules unless after a weighbridge is not adjusted and unless it is persistently
found to be.
(9) All weights used, kept or possessed for the purchase of cane shall
be made of iron, brass or other suitable metal, and be clearly stamped
or marked to indicate the denomination.
(10) The part of the mechanism of a weighbridge by which its adjustment
is controlled shall, wherever possible, be kept suitably sealed or locked.
(11) All scales and weights used, kept or possessed for the purchase
of cane shall be open to inspection, examination and test by an Inspector
at all times without notice, and shall be made available for inspection,
examination and test when required by the Inspector.
(12) An occupier or purchasing agent shall cause all weighbridges or
scales used, kept, or possessed by him for the purchase of cane to be
tested at least twice a week, and maintain a record of such tests which
shall on demand be shown to the Inspector.
(13) At every purchasing centre adequate facilities for weighing, and
at heavier purchasing centres and at the main gates of each factory
weighbridges with ticket printing device shall be provided to the satisfaction
of the Cane Commissioner by the occupier. Carts and Lorries shall not
be kept waiting unduly for weighment
Explanation:-- A cart or lorry shall not be deemed to have kept waiting
unduly if the supplier of cane, having received !instructions in writing
to deliver cane on a certain day, ignores those instructions, or where
the practices or issuing written instruc1ions is in force, brings cane,
without receiving such instructions.
(14) An occupier shall:--
(i) provide metalled approaches to and exists from all weighbridges
at the factory premises to such distance as may be in each case reasonable
and feasible and up to a distance of one furlong, when required to do
so by the Cane Commissioner;
(ii) kept the same in a proper state of repair;
(iii) provide reasonable space' for parking of carts 'and lorries•
waiting their turn for approach to the weighbridges; and
(iv) provide sheds and cattle troughs at the factory gates to the satisfaction
of the Cane Commissioner.
(l5) Weighments of the cane shall not be made more than half an hour
after sunset, unless lighting arrangements approved by the Cane Commissioner
as sufficient for the easy reading of the scales arms by both the purchaser
and the vendor; or his authorised agent, are made and maintained.
(16) No deduction shall be made from the weight of cane on the ground
that the cane is improperly stripped or on any other ground whatever,
unless approved by cane Commissioner:
Provided that where cane is brought in bundles and weighed in bundles
a deduction not exceeding 1 seer for every 4 maunds of cane may be made
on account of the weight of the binding material
- Payment: --
(l) The occupier or purchasing agent shall provide adequate facilities
to the satisfaction of the Cane Commissioner for the payment of price
(2) The occupier or purchasing agent shall make all payments for cane
at the purchasing centre within one week of demand: Provided further
that when a purchasing centre is closed all payments must be made at
the centres within a week of the closing of the centre and, if any growers
do not appear to receive payments within a week of the closing of the
centre, payments to them should thereafter be made at the factory within
24 hours of demand.
(3) Payments shall be made on the basis of the recorded weight of cane
at the purchasing centre.
(4) Payments for cane purchased for a factory shall not be made to a
representative of the grower (or to a representative of the person representing
him self to be such grower) un1ess he is duly authorised by him in writing
to receive such payment: Provided that no person who purchased the cane
from the grower, or
who is employed by an occupier or a purchasing agent and no person who
bas lent money to the grower, and no agent such person, shall take such
(5) An occupier and purchasing agent shall be liable for all payments
due for cane supplied to him or on his behalf. If a purchasing agent
fails to make payment for cane purchased by him for a factory, the occupier
of such factory shall be responsible for making such payments:
Provided that notice or complaint of non-payment is given, or made in
writing, to the occupier of the factory concerned, within three months
of the date on the purchasing centre at which the cane was supplied
(6) Except as provided in sub-rules
(7), (8), (9) and (10) no deduction
shall be made by way of fine or otherwise from the price of the cane
purchased which would reduce such price to a figure below that calculated
at the prescribed minimum rate.
Recoveries of dues of Cane-Growers' Co-operative Society may be made
by deduction from the price payable for cane. (7) When transport is
provided by the occupier of the factory he may deduct the cost of' transport
according to the rate fixed by the Cane Commissioner:--
(i) Deduction may be made, if cane is definitely below the average of
standard cane for the area on account of delay in transport or natural
causes, e.g., serious waterlogging, intensive insect attack, disease,
or severe frost the Cane Commissioner will issue general instructions
for the guidance of the occupier in regard to the extent to which such
deductions are to be made and in cases of dispute the decision of the
Cane Commissioner will be final. (8) The Provincial Government, if satisfied
that in any local area a substantial quantity of cane will remain standing
and unsold on the 1st June, and is not likely to be purchased at the
prescribed minimum price may by notification in the Official Gazette
direct in such area deduction as may be specified in the notification
may be made from the price of the cane purchased after that date.
(9) If any loan has been advanced by an occupier or a purchasing agent
for meeting the expenses of cultivation to the persons from whom cane
has been purchased, the amount of such loan, together with simple interest
thereon at a rate not exceeding one rupee per month for the period the
loan has been outstanding may, subject to the terms of the agreements
between the lender and the borrower, be deducted from the amount paid
for the cane:
Provided that the amount of the loan is not disproportionate to the
area to be sown, or the assistance necessary to sow it, or the value
of the cane to be delivered, and that no deduction is made in respect
of a loan given more than three years previous to the date of purchase
Explanation:-- A loan for the purpose of this rule shall mean only an
advance made in pursuance of an agreement to sow a definite area of
sugarcane, and for enabling or assisting such area to be sown, or in
pursuance of an agreement to deliver a certain amount of cane. The Cane
Commissioner will decide on application from the occupier or purchasing
agent concerned, whether a loan is proportionate to the area to be sown,
or the assistance necessary to sow it, or the value of the cane to be
- Notices: --
(1) An occupier or a purchasing agent shall cause to be put up at each
purchasing centre from the date it is started till the date it is closed:--
(i) a copy of an abstract of the rules when received from Government;
(ii) notice of suitable size in clear bold letters showing the minimum
price fixed by Government and.
(iii) the rates at which cane is being purchased at the Centre.
(2) such notices shall be put up:--
(a) at each entrance to the factory;
(b) at the place at which weighments of cane are made for the factory;
(c) at such other conspicuous places near the place mentioned in (a)
and (g) as the Collector of the District or the Inspector may direct.
(3) Entries of such notices shall be made legibly in Urdu, Pushto and
English scripts, and shall be on one side of the paper only,
- Registers and records:--
(1) The occupier or a purchasing agent shall prepare or cause to be
prepared, at each purchasing centre a parcha in triplicate showing correctly:--
(a) the serial number of the parcha;
(b) the date of purchase;
(c) the, name of the person from whom the cane is purchased with his
parentage and full ,address, together with similar particulars about
the person authorised by the vendor to deliver cane on his behalf;
(d) the number of the requisition or purzi assigned to the vendor, if
(e) the weight of the cane, including the weight of the cart, lorry,
or wagon, as the case may be;
(£) the weight tax of the cart, lorry or wagon, as the case may
(g) the weight of the binding material to be deducted;
(h) the net weight of the cane purchased;
(i) the rate at which the cane is purchased; and
(j) the price that has to be paid for the cane at that rate after making
Deduction on account of the Development Fund.
The entries of items (e) and (f) shall be made and announced in the
presence of the person who actually deliver the cane while the cart,
lorry or wagon still standing on a weighbridge, and in the case of the
weighment on beam scales,
Immediately on completion of the weighment.
Entries as regards items (a) and (e) shall be made as soon as weighment
takes place; and entries as regards items (f) to (j) as soon as the
empty cart is weighed.
(2) The parcha referred to in sub-rule (1) shall be handed over in duplicate
to the person from whom cane is purchased, or to his authorised agent;
before he leaves the purchasing centre. The triplicate copy of counterfoil
shall be kept at the purchasing centre concerned.
(3) When payment is made for cane purchased, the receipt of the payee
shall' be taken on one of the counterfoils of the parcha handed over
to him in accordance with the provision of sub-rule (2).
(4) An occupier and a purchasing agent shall maintain or record showing
(a) the serial number of the parcha;
(b) the date of the purchase;
(c) the name of the person from whom the cane is purchased, with his
parentage, caste and full address, together with similar particulars
about the person, if any, authorised by the vendor to deliver the cane
on his behalf,
(d) the number of the requisition slip or purzi assigned to the vendor,
(e) the weight of the cane including the weight of the lorry or cart
or wagon; as the case may be;
(f) the weight of the binding material to be deducted; .
(g) deduction on account of bad cane;
(h) the net weight of the cane purchased;
(i) the rate of which the cane is purchased;
(j) the price that has to be paid for the cane at that rate;
(k) the amount of loan, if any, advanced to the person from whom the
cane is purchased;
(l) the amount of interest up to the date of recovery of the same;
(m) the amount deducted on account of the Development Fund;
(n) the amount actually paid on account of the cane purchased; and
(o) the date of payment:
Provided that where no loans are advanced the columns giving the particulars
by (k) and (1) above may be omitted from the register or record.
(5) A separate register or record shall be maintained for each factory
on behalf of which purchases are made.
(6) An occupier and. purchasing agent shall maintain or cause to be
maintained, at each purchasing centre an inspection book in which Inspectors
may record their remark and instructions.
(7) The registers and records maintained, and copies of counterfoils
or parcha issued, including the. copies or counterfoils of the parchas
containing the receipts of the payees shall be kept at the purchasing
centre until it is finally closed for the year. They shall be opened
to. inspection and checked by an Inspector; Or such other public servant
as may be appointed by him for the purpose in this behalf:
Provided that the registers and records may be taken for check to the
factory once in a calendar month and retained there for a period not
exceeding 24 hours, at time when no purchases of cane are being made
at the purchasing centre.
(8) The registers, records, parchas, etc., referred to in sub-rule (7),
shall be preserved by the occupier concerned for two years from the
date of last transaction entered thereon.
(9) The Cane Commissioner may sanction the use of such other registers,
records and forms in place of those specified in sub-rules (l), (3)
and (4) as in his opinion substantially fulfill the object of those
(10) The occupier of a factory shall submit correct returns relating
to the production and sale of sugar and purchase of cane in such form,
by such date and to such authority as may be directed by the Cane Commissioner.
(I) Any dispute touching an agreement, referred to in these rules, shall,
be referred to the Cane Commissioner for decision, or if he so directs,
to arbitration. No suit shall lie in a Civil or Revenue Court in respect
of any such dispute.
(2) If the Cane Commissioner directs the reference of suit to arbitration,
it shall be referred to sole arbitrator acceptable to the parties concerned.
In case no sole arbitrator is acceptable to both parties, the dispute
in question shall be referred to a Board of Arbitration, consisting
of one representative of each party and an umpire acceptable to both
representatives. If the representatives of the parties are unable to
elect such an umpire within a fortnight, the Cane Commissioner shall
either himself act as umpire or nominate one. The umpire shall be the
President of the Board of Arbitration, and shall have a vote in case
of disagreement, between the representatives.
(3) The sole arbitrator the President of the Board of Arbitration shall
have the full power of a Court in respect of summoning the parties,
witnesses and records.
(4) The decision of the sole arbitrator or Board of Arbitration shall
be final and binding on both parties, and shall not be called in question
in any Civil or Revenue Court.
(5) The sole arbitrator or the Board of Arbitration shall give an award
within the time fixed by the Cane Commissioner failing which the Cane
Commissioner may decide the dispute himself, or appoint another arbitrator
or arbitrators for the purpose.
(6) Any party considering himself aggrieved by an award may appeal to
the Provincial Government within one month of the date of the communication
of the award and the Government shall pass such orders as they deem
(7) The Provincial Government's order in appeal shall be final.
(8) On application to the Civil Court having jurisdiction over the subject
matter of the decision or award, the decision of the Cane Commissioner
or the award of the arbitrator or arbitrators, or the Provincial Government's
orders in appeal against award, shall be enforced by the Court as if
such decision, award, orders in appeal were a decree of that Court.
- Penalties:-- (l) Any person contravening any of
the provisions of these rules for which no penalty has been provided
in the Act, or not obeying a lawful order or direction conveyed to him
in writing by the Cane Commissioner, if he is authorised by the Provincial
Government to pass or issue such order, shall be punishable with fine
which may extend to Rs. 1,000.00.
Provided that for a breach of the provisions of these rules committed
by a purchasing agent or an employee of the occupier of a factory, under
the orders in writing of the occupier or with his connivance and for
his benefit, such occupier shall also be liable to punishment under
(2) Where an occupier of a purchasing agent is charged with an offence
against these rules, he shall be entitled, subject to the direction
of the Court, upon complaint duly made by him, to have any other person
whom he charges as the actual offender brought before the Court at the
time appointed for hearing the charge, the trial of the case shall thereupon
proceed as if such other person were also an accused person and is,
after the commission of the offence has been proved, the occupier or
the purchasing agent as the case may be, proves to the satisfaction
of the Court:-
(a) that has used due diligence to enforce the execution of these rules;
(b) that the said person committed the offence in question without his
knowledge, consent or connivance, that other persons shall be convicted
of the offence and shall be liable to the like fine as if he were the
occupier or the purchasing agent, as the case may be, and the occupier
shall be discharged from all liability in respect thereof under these
(3) When it is made to appear to the satisfaction of the Inspector at
any time prior to the initiation of prosecution:--
(a) that an occupier or a purchasing agent has used all due diligence
to enforce the execution of these rules; and
(b) that the offence has been committed without the knowledge,
consent or connivance of the occupier or the purchasing agent, or in
contravention of his orders as the case may be, the Inspector shall
proceed against the person whom he believes to be the actual offender
without first proceeding against the occupier or the purchasing agent
and such person shall, if found guilty, be liable to get the punishment
to which the occupier or the purchasing agent would otherwise have been
(4) No prosecution shall ordinarily be instituted under these rules
unless the party complained against has been given an opportunity to
show cause why he should not be prosecuted.
(5) No Court shall take cognizance of any offence under these rules
except upon complaint made within one year of the date on which the
offence is alleged to have committed.
(6) In case of a first offence the Court may, instead of passing a sentence
e of fine, discharge the offender after administering a warning. Such
warning in the case of a purchasing agent shall be endorsed on his licence.
(7) On pronouncement of judgment in a case instituted under these rules
the Court shall send copies thereof to the Cane Commissioner, the occupier
of the factory concerned, the Collector of the District in which the
factory is situated.
- Protection to persons acting under these rules:---
No suit, prosecution or other legal proceedings shall lie against any
person for anything which is in good faith done or intended to be done
under these rules.
- Powers to exempt from rules:--- The Provincial Government
may for special reasons, by notification, exempt any factory or class
of factories from all or any of the previous rules framed under the
- Interpretation of rules:--- All matters connected
with the interpretation of these rules shall be referred to the Cane
Commissioner, whose decision shall be final.