Parameters
Parameters for determination of Sugarcane price:-
The sugarcane price payable to the farmer under section 4 shall be determined having regard to the following parameters such as value of sugar, value of bagasse, value of molasses, value of press mud and harvesting and transport cost.
The parameters referred to in sub-role (1) shall be as follows:-
A.Value of sugar: - The “value of sugar” shall be ascertained as the actual amount realized from the sale of all grades of sugar such as raw, white sugar, refined sugar, levy sugar (if any), sugar exported, to the factory during the financial year including the cost of sugar given to members at concessional rates as decided by the Government etc. and including the subsidy for promotion of sugar given by the Central or State Government.
Explanation: - In calculating the value of unsold sugar during the financial year the provisions of accounting standard-II (AS-II) issued by the Chartered Accountant’s Institutes of India, Shall apply.
B. Value of Bagasse: - “Value of Bagasse” shall be ascertained as the actual realization of amount from bagasse sold during the financial year and shall include the value of bagasse during the financial year calculated on the basis of average market rates.
Provided that, where the bagasse is used as boiler fuel for the purpose manufacturing sugar in the factory the cost of such bagasse shall not be counted in ascertaining the value of bagasse.
Provide further that in case the factory is having Co- generation unit, the quantity of bagasse shall be reckoned as an average rate of 4 per cent of total cane crushed as per average market rates.
C. Value of molasses: - “Value of molasses” shall be the amount actual realized by the factory from the sale of molasses during the financial year.
Provided that in case the factory is having distillery unit, value of molasses as per the market rates, used in such distillery or used for any other purpose by the factory shall be considered as income.
Provided that in case any molasses remains unsold by the factory during the financial year the value of molasses shall be calculated on the basis of average market rates.
D. Value of press mud:- “Value of press mud ” means the actual realization of amount to the factory from sale to press mud during the financial year.
Provided that in case the press mud is utilized by factory for composting or other purposes the value of such press mud as per the average market rate shall be the considered as income of the factory.
Provided further that their remains any unsold press mud during the financial year the value of such press mud calculated on the basis of market rates shall be treated as income of the factory.
E. “Harvesting and transport cost”:- only the following expenses shall be considered for determining the harvesting and transport cost.
1. Cost incurred for harvesting, loading and transporting sugarcane from field to sugar factory.
2. Cost for movement of labour and transport vehicle engaged for harvesting and transportation.
3. Cost of facilities actually provided for labours and transporter.
4. Amount of commission actually paid for harvesting and transport.