Schedule

( Section 16 ) 1. (1) Every occupier of a factory shall, in the matter of acceptance or purchase of cane for use in the factory, observe the following order of priority, namely:-- (a) the cane cultivated on the land owned or taken on lease by the factory concerned: Provided that the cane cultivated in any land acquired or taken on lease by the factory after the commencement of this Act shall be treated as cane supplied by any other grower mentioned in sub-item (iv) of item (b) for purposes of priority; (b) the cane supplied by the following in the order indicated below:- (i) experimental stations of the Government, (ii) liaison farms, (iii) Observation plots, (iv) cane growers whose names are entered in the register maintained under sub-section (1) of section 13 (hereinafter referred to as ‘registered cane growers’) Provided that from among the registered cane growers, the cane growers from whom the factory was having supply of cane for a maximum number of seasons during the five crushing seasons ending with the crushing season for 1960-61 shall be given preference for supplying cane. 1[XXXX] (2) Notwithstanding anything in sub-paragraph (1) - (a) a co-operative factory may take its requirements of cane from its members first in accordance with its bye-laws and take the balance, if any, preferably from non-member cane growers in the factory zone; (b) a new factory that commences crushing after the commencement of this Act, 2[not being a co-operative factory] may take sixty per cent of its total requirements of cane from its shareholders cultivating cane in the factory zone on a pro rata basis with reference to the amount of share capital paid by each and take the balance from cane growers in the factory zone, each of whom is cultivating cane in not more than one hectare of land (hereinafter referred to as ‘small cane growers'). 3[1-A.Notwithstanding anything in this Schedule, in the case of a co-operative factory, the members of the factory, whether they grow cane within or outside the factory zone, shall be deemed to be registered cane growers for purposes of this Schedule and shall have priority over the non-member registered cane growers in the matter of sale or supply of cane to the factory:] 4[Provided that every such member shall obtain the prior permission of the Cane Commissioner on furnishing him the particulars of cane grown by him outside the factory zone.] 2. Each registered cane grower shall be entitled to supply such quantity of cane as is equivalent to the average quantity supplied by him per crushing . Omitted by the Act No.3 of 1970, S.3. . Inserted by the Act No.3 of 1970, S.3. . Inserted by the Act No.3 of 1970, S.3. . Added by the Act No.25 of 1976, S.17. season during the period of five crushing seasons preceding the one which immediately precedes the relevant crushing season: Provided that in the case of a registered cane grower who supplied cane to a factory for only a part of the said period of five crushing seasons, the quantity of cane which such registered cane grower is entitled to supply shall be equivalent to one title to the total quantity of cane supplied by him during the part of the period aforesaid. 3. The number of registered cane growers eligible to supply cane to a factory during each crushing season shall be limited depending upon the total quantity of cane that is available for supply to the factory from different sources mentioned in paragraph 1 to meet the average requirements of the factory. Explanation :- For the purpose of this paragraph, the average requirements of the factory for each crushing season shall be the average of the quantities of cane crushed during the five crushing seasons preceding the relevant crushing season or 140 times the daily crushing capacity of the factory, whichever is less. 4. If the requirements of cane of a factory in any crushing season exceed the quantity of cane that is available for supply to the factory from different sources mentioned in paragraph 1, the additional requirements may be taken from the share-holders of the factory who has grown cane in the factory zone in proportion to the shares held by him with the approval of the Cane Commissioner upto a maximum of fifty percent of the total additional requirements. The balance of requirements has to be taken from the registered can growers of 5,4,3,2, and 1 year groups in the order of mention who may be having excees cane available. If the full additional requirements are not met from these sources also, the balance of requirements may be taken from new cane growers in the factory zone: 1[Provided that nothing in this paragraph shall apply in the case of a co- operative factory where its members offer to supply the said additional requirements in accordance with its by-laws.] 5. Any factory which, in the opinion of the Government, is substantially expanded, may take sixty per cent of its additional requirements of cane resulting from such expansion from cane growers in the factory zone, who have subscribed for the expansion by way of loan or share capital, in proportion to the amount of such subscription and take the balance from small cane growers: 6. When a co-operative factory proposes to issue additional shares with a view to expand its crushing capacity, such shares shall be offered first to the members of that factory who own less than seven shares each to enable them to supply cane upto 54 metric tonnes each and the balance of shares, if any, left over shall then be offered in the following order:-- (i) to non-member cane growers situated within a radius of five miles of the factory upto a maximum of three shares each; and (ii) to other growers in the factory zone. 7. The members of cane growers co-operative society who cultivate cane in a factory zone shall be entitled to supply cane to the factory concerned. . Added by the Act No.3 of 1970, S.3. 8. The Cane Commissioner may grant permission,-- (i) for the purchase of cane grown in a factory zone by any person or factory other than the factory for which such zone has been declared; and (ii) for the sale of cane grown in a factory zone to any person or factory other than the factory for which such zone has been declared. 9. When a registered cane grower commits a breach of agreement entered into by him with an occupier of a factory for the supply of cane to the factory, his name shall be liable to be removed from the register of cane growers maintained under Section 13 for a period of three crushing seasons and such removal shall be without prejudice to any other action to which he may be liable under this Act.