Karnataka to reconstitute Sugarcane Control Board

The commissioner for cane development and director of sugar will have powers to declare additional cane price over and above FRP every year

The Karnataka government has proposed to reconstitute the Sugarcane Control Board and give additional powers. The government proposes to vest with the Commissioner for Cane Development and Director of Sugar powers to declare the additional sugarcane price over and above Fair and Remunerative Price of Sugarcane for the year.

 

According to the Karnataka Sugarcane (Regulation of Purchase and Supply) (Amendment) Bill, 2014 tabled in the legislative assembly by Minister for Co-operation and Sugarcane H S Mahadeva Prasad, the government intends to give equal representation to factory owners and growers in all revenue divisions of the State.

 

Every order issued under sub-section (1) shall be laid before both houses of state legislature. The Bill would also enable the government to implement the purchase and supply sugarcane in a transparent manner. The Board would be provided with powers of civil court to inquire into the matters in discharge of their functions such as summoning of persons and documents.

 

The Bill has made provision for payment of sugarcane price in two stages - at first stage immediately, on supply of sugarcane, the sugarcane growers shall be paid the Fair and Remunerative Price based on previous year's recovery of the concerned factory and at second stage payment of additional price of sugarcane on revenue sharing basis determined on the actual realisation in a sugar factory with fourteen days under section 4A. Every payment made by the factory owner to growers will be through a bank account only.

 

The government would constitute an expert committee for calculation of actual realization in sugar factory and to advice the Board.

 

Amendments sought by the sugar minister also includes taking into consideration of local factors like actual recovery of sugarcane, realization of sugar and its by-products like bagasse, pressmud and molasses and ethanol or other products directly produced from sguarcane juice without producing sugar for deciding additional sugarcane price.

 

The Bill defined 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 defined 'year' as the year commencing on July 1 and ending June 30 in the year following year.

 

The 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 Board has to meet thrice in a year.