The Sugarcane (Control) Order, 1966

The sugarcane (control) order, 1966 is launched under the Essential Commodities Act, 1955 and is extended (in interest of general public) to control the production, supply, distribution, trade and commerce of sugarcane in India.  

Section 2 provides definition of necessary terms like ‘Crusher’, ‘Power crusher’, ‘Producer of Khandsari sugar’, ‘Khandsari unit’, etc. The sugar produced by open pan process is called Khandsari sugar. 

Section 3 (1) enlists the factors, on the basis of which the Central government decides the minimum price to be paid to the producers. The factors are: 

  • Cost of sugarcane production 
  • Quantity of recovered sugar from canes 
  • Fair prices to consumers 
  • The general price trends of sugar and other related agricultural commodities 
  • Returns from growing other alternative crops 

Section 3 (8) clearly mentions that if any sugar producer (or its agent) defaults in paying the price fully or partially to the sugarcane growers or co-operative societies within 14 days of the delivery of sugarcane (or the specified time), then the enquiry could be forwarded to the district collector, where the factory is located.  

Section 4 states that the minimum price for sugarcane (to be sold to Khandsari sugar producers) will be fixed by the Central government from time to time and the same should not be sold at a price below the fixed price. Section 4A talks about the situations where a rebate in the fixed prices could be allowed with the approval from Central government.  

Section 5 states that the sugar producer or his agent has to pay an additional amount along with the minimum fixed price of the sugarcane if they purchase for four successive years beginning after November 01, 1958.  Section 5 (4) mentions that it would be the duty of the Central government to appoint officials or authority to decide the additional prices.  

Section 6 delineates the regulatory powers related to the movement and distribution of sugarcane. Section 6A states that no two sugar factories should be setup in the vicinity of 15 kms radius. 

Section 7 lists the powers of Central government to regulate the cane purchase and licensing of power crushers and khandsari units. Section 7 (a) and (b) states that any khandsari unit or power crusher has to be licensed by the Central government and any item (gur, gul, jaggery, rab or khandsari sugar) cannot be manufactured by purchasing the sugarcane, by a crusher, if its not owned by growers or body of growers.  

Section 8 mentions that the Central government has the power to issue direction to the producers, crushers, khandsari units and co-operative societies regarding purchase, production, maintenance, price, packaging, working hours etc.  

Section 9 says that the Central government or any person authorized by Central government has the power to ask from producer, crusher, operator, co-operative, for any information related to the sugar price, stocks of sugar, details of cane purchases, price paid for cane etc. Section 9 (d) further says that the authority has the power to inspect the accounts, books, registers or any other related documents.  

Section 10 directs all the sugar producers, agents, factories, co-operatives to comply with any order or direction conferred by this order. 

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