The State government has decided to reconstitute the Sugarcane Control Board and give it more powers in the wake of the ongoing sugarcane price payment issue. Minister for Co-operation and Sugar H.S. Mahadeva Prasad on Monday tabled the Karnataka Sugarcane (Regulation of Purchase and Supply) (Amendment) Bill, 2014, to give equal representation to factory owners and growers in all revenue divisions of the State.
PaymentThe Bill has made provision for payment of sugarcane price in two stages — first, on supply of sugarcane for payment of fair and remunerative price based on previous year’s recovery, and second, payment of additional price of sugarcane on revenue-sharing basis determined on the actual realisation in sugar factory.
The Bill would enable the government to effectively implement the purchase and supply of sugarcane in a transparent manner. The board would be provided with the powers of a civil court to inquire into matters in the discharge of their functions such as summoning of persons and documents. The Bill defines the ‘additional sugar cane price’ as the additional price to be paid by the occupier of the factory to grower for sugarcane delivered at the factory gate over and above fair and remunerative price declared by the commissioner for cane development and director of sugar, based on the decision of the board.
A clause, ‘fair and remunerative price of sugarcane’ as price fixed by the Centre under clause 3 of Sugarcane (Control) Order 1966 for the year for sugarcane delivered at the factory gate, has been inserted. The Bill also defines ‘year’ as the year commencing on July 1 and ending June 30 the following year.
BoardThe government has proposed the establishment of a board comprising three Ministers (sugar, agriculture and co-operation), bureaucrats (seven), sugarcane growers (five) and factory owners (five) representing all four revenue divisions.
The Bill proposes to form an expert committee for calculation of actual realisation in sugar factories and to advise the board.
The board has to meet thrice a year. It has to decide sugarcane price on revenue-sharing basis taking into consideration actual revenue realised from sugar, bagasse, molasses and press-mud.
