Sugar Factory - Fixation of State Advised Cane Price for the season 1999-2000 - Orders - Issued.


G.O.Ms.No.398.                    Dated:17.12.1999.

Read the following:-

1) G.O.Rt.No.762, Industries & Commerce (Sugar) Department,Dt.11.11.1999.

2) From the Director of Sugar & Cane Commissioner, D.O.Lr.No. 8556/99/C2, Dt.10.12.99 and Dt.16.12.99.



O R D E R :

The Government of India has announced the S.M.P.of Rs.561/- per M.T., linked to basic recovery of 8.5% to be paid by the Sugar Factoriesto the cane suppliers for the year 1999-2000.

2. With a view to ensuring payment of fair andreasonable cane price to the farmers, who supply sugarcane to the sugar factories, and inorder to fix the State Advised Price (S.A.P) in a more scientific manner, on the basis ofall factors that are relevant to the sugar industry, the Government in the reference firstread above constituted a Committee under the Chairmanship of the Director of Sugar &Cane Commissioner consisting of representatives from Cane Growers Association, PublicSector, Coop.Sector and South India Sugar Mills Association(SISMA) as Members. TheCommittee held meeting with farmers Association members, representatives of SISMA, NizamSugars Ltd.,(N.S.L)and the MD, A.P.State Federdation of Coop.Sugar Factories Ltd., andsubmitted its report to the Govt., in the reference second read above.

3) The Govt., have examined the report of theCommittee mentioned in the reference second read above and after tdaking intoconsideration the interests of the farmers and the sustainability of the factories havedecided to sanction an increase in the cane price linked to the peak period recovey of theconcerned sugar factory. For determining the percentage increase the following two slabshave been fixed:

1) for factories below the average Peak PeriodRecovery of State, 3% increase over last year price paid (i.e., SAP) by the sugarfactories, and

2) for factories above the average Peak PeriodRecovery of State, 4% increase over last year price paid (i.e., SAP) by the sugarfactories.

4) In pursuance of the above decision, Directorof Sugar &Cane Commissioner will indicate the average peak period recovery of theState as well as the peak period recovery of the factories. All sugar factories, whethersituated within or outside the zone of the sugar factories in the State, areadvised to pay the S.A.P. to the cane growers who supply cane to the sugar factories, asper the slabs mentioned in the above para, for the season 1999-2000. This price will beexclusive of the incentives paid by the sugar factories.

5) All the Sugar Factories in the State have topay the State Advised Cane Price without any monetary assisrtance from the StateGovernment. The payment of Sugarcane price shall be adjusted against the ultimate pricepayable under price sharing formula under Clause 5 (A) of Sugarcane (Control) Order, 1966.

6) Orders regarding payment of Purchase Taxincentives of Rs.20/- per M.T., over and above the S.A.P., to the cane growers andprocedure of adjustment to be followed will be issued seperately. Separate orders willalso be issued in respect of State Advised Price for Khandasari units.

7) The Director of Sugar and Cane Commissioner,Hyderabad shall ensure that the State Advised Cane Price is honoured by all the SugarFactories in the State.







The Director of Sugar & Cane Commissioner,A.P., Hyderabad.

The Managing Director, Nizam Sugars Ltd.,Hyderabad. The ManagingDirectors of All Coop.Sugar Factories, through the DOS&CC.

The Secy., to Govt. of India, Ministry of Food& Consumer Affairs, Deptt., of

Sugar & Edible Oils, New Delhi.

The Managing Director, A.P.State Federation ofCoop.Sugar Factoris Ltd.,Hyderabad.

The Comissioner of Information & PublicRelations,Hyderabad.

The Accountant General of A.P., Hyderabad.


Copy to:

The P.S. to M (Tourism&Sugar),

The P.S. to Secretary., to C.M.,


//Forwarded :: By Order//