The Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981

(1) This Act may be called the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981. (2) It extends to the whole of the State of Bihar. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires,— (a) 'Area' or 'Reserved Area' means the area reserved for a factory under section 14; (b) 'Board' means the Sugarcane Board constituted under section 3; (c) 'Canes' means sugarcane intended for use in a factory or for being used in the manufacture of khandsari sugar; (d) 'Crushing Season' means the period commencing on 1st October in any year and ending on 30th June next year; (e) 'Factory' means any premises, including the precincts thereof, whereon twenty or more workers are working or were working on any day of the preceding twelve months, and in any part of which sugar is being manufactured or is ordinarily manufactured by the use of vacuum pan or vacuum evaporator, and includes a khandsari sugar manufacturing unit; (f) 'Khandsari Sugar' means sugar in the manufacture of which neither a vacuum pan nor a vacuum evaporator is employed; (g) 'Occupier' in relation to a factory means the person who has ultimate control over the affairs of the factory; (h) 'Prescribed' means prescribed by rules made under this Act; (i) 'Price' means the price of sugarcane fixed by the Central Government under the Sugarcane (Control) Order, 1966, or by the State Government under this Act; (j) 'State Government' means the Government of Bihar. In this Act, unless there is anything repugnant in the subject or context,— (a) "Board" means the Sugarcane Board constituted under section 3; (b) "Cane" means sugarcane intended for use in a sugar factory; (c) "Cane Commissioner" means the officer appointed as such by the State Government and includes any officer appointed by the State Government to exercise all or any of the powers of the Cane Commissioner; (d) "Cane Grower" means a person who cultivates cane either by himself or by members of his family or by hired labour or by share-croppers and who owns or is in possession of land; (e) "Cane Growers' Co-operative Society" means a society registered under the Bihar Co-operative Societies Act, 1935 (Bihar Act VI of 1935) which has as its object the sale of cane grown by its members; (f) "Collector" includes an Additional Collector or any other officer not below the rank of a Sub-Divisional Officer appointed by the State Government to perform the functions of a Collector under this Act; (g) "Factory" means any premises including the precincts thereof in any part of which any manufacturing process connected with the production of sugar by means of vacuum pan system is being carried on or is ordinarily carried on and includes a Khandasari Sugar Manufacturing Unit; (h) "Inspector" means an Inspector appointed under Section 4; (i) "Occupier of a Factory" means the person who has ultimate control over the affairs of a factory and where the said affairs are entrusted to a Manager, Managing Director or Managing Agent, such Manager, Managing Director or Managing Agent shall be deemed to be the occupier of the factory; (j) "Prescribed" means prescribed by rules made under this Act; (k) "Purchase" means any purchase of cane by or on behalf of a factory for consumption or use in such factory; (l) "State Government" means the Government of Bihar; (m) "Sugar" means any form of sugar containing more than ninety percent of sucrose; (n) "Supply" means the supply of cane by or on behalf of a cane grower or a cane growers' co-operative society to a sugar factory.

(1) No sugarcane shall be crushed by any sugar factory unless the owner thereof has obtained from the Cane Commissioner a licence in such form and on such conditions as may be prescribed.

Provided that, the Cane Commissioner shall not refuse to grant a licence under this section except for reasons to be recorded in writing.

(2) The State Government may by rules prescribe the condition under which the licence may be granted.

Provided that the State Government may refuse to grant a licence to any factory, if— (a) the owner has already been denied a licence or has its licence refused or not renewed; or (b) the application for licence was not made for the previous crushing season.

(3) Every factory, subject to the provisions of this Act, shall function with the previous permission of the State Government.

(4) Notwithstanding anything contained in sub-section (1), any factory owner who has applied for a licence under section 27 and has deposited the requisite fee prescribed by the State Government, shall be deemed to have been granted a licence until the application is otherwise disposed of.

Provided that, the State Government or the Cane Commissioner may cancel or suspend the licence for breach of any conditions under which the fees were deposited.

(1) No sugar factory or khandsari unit shall have on its premises or purchase sugarcane for crushing or manufacturing purposes unless such factory or unit is a licensee under the provisions of this Act.

(2) Where a factory owner crushes sugarcane or causes it to be crushed without a licence, he shall be liable to be prosecuted in accordance with the provisions of this Act.

Provided that, where a factory owner produces his own sugarcane and consumes it for crushing purposes without a licence, he shall be deemed to be violating the provisions of this Act.

(1) Subject to the provisions of section 15, the owner of a sugar factory or a khandsari unit shall comply with the following conditions, as may be prescribed by the State Government from time to time:- (a) To start the crushing operation on the date notified by the State Government; (b) To supply sugarcane to the farmers in accordance with the rules; (c) To abide by the instructions issued by the Board in connection with the purchase of sugarcane.

(2) The owner shall ensure the following: (a) Purchase of sugarcane through co-operative societies or directly as per the licence; (b) Payment of the price of sugarcane through the society at the rates fixed by the Cane Commissioner or as decided under section 48; (c) Regulation of working hours and holidays; (d) Use of the licence only for the purposes specified therein; (e) Maintenance of records, accounts and registers as prescribed; and (f) Submission of returns as required.

Any licence granted under section 15 or 16 may be cancelled or suspended by the Cane Commissioner if the owner of the factory or unit: (a) Violates any of the terms or conditions of the licence; (b) Fails to pay the price of the sugarcane purchased or supplied; (c) Prevents the inspectors or authorized officers from inspecting the premises or records; (d) Fails to maintain the records or fails to submit the reports and returns as required under the Act.

(1) If the exigencies of the supply of sugarcane or the economic viability of a sugar factory so require, the State Government or the Cane Commissioner may order the relocation of the factory.

Provided that, the owner shall be given an opportunity of being heard before such an order is passed.

(2) The costs related to the shifting of the factory shall be borne by the owner unless otherwise decided by the Government.

(1) The Cane Commissioner may, by order, stop the working of any factory if it is found that the factory is operating in violation of the provisions of this Act.

No person shall transfer his license to any other person without the prior permission of the Cane Commissioner.

(1) Every factory shall pay such fees for the grant or renewal of a licence as may be prescribed by the State Government.

The State Government may, by notification, delegate any of its powers under this Act to the Cane Commissioner or any other officer.

(1) If the State Government finds that the interests of the sugarcane growers are not being adequately protected by the factory owners, it may, by notification, direct the factory owners to employ such staff as may be necessary for the purpose of supervising the purchase of sugarcane and payment of the price thereof.

(1) Every factory shall appoint a Manager to be responsible for the management of the factory and for compliance with the provisions of this Act.

(1) No factory owner shall employ a contractor for the purpose of purchasing sugarcane from the growers.

(1) Every factory owner shall, before the commencement of the crushing season, submit to the Cane Commissioner an estimate of the total quantity of sugarcane required for the season.

Every factory shall make adequate arrangements for the purchase of sugarcane, including weightment, payment, and storage.

(1) A factory may, with the prior approval of the Cane Commissioner, establish purchasing centres for the purchase of sugarcane from the growers.

(1) All sugarcane purchased by a factory shall be weighed at the purchasing centre in the presence of the grower or his representative.

(1) The Cane Commissioner may, by notification, declare any area as a reserved area for a sugar factory.

(1) No person other than the factory for which an area is reserved shall purchase sugarcane in such area.

(1) A factory may purchase sugarcane from outside its reserved area only with the permission of the Cane Commissioner.

(1) The State Government may order a survey of any area for the purpose of assessing the quantity of sugarcane production.

(1) Every factory shall maintain such registers and records as may be prescribed.

(1) The State Government may, by notification, declare the varieties of sugarcane to be grown in a particular area.

(1) No person shall distribute any seed of sugarcane other than the variety notified by the State Government.

(1) Every factory owner shall maintain a record of the seeds distributed to the farmers.

(1) Every factory shall maintain a record of the weightment of sugarcane at the factory gate and at the purchasing centres.

(1) Every factory shall provide basic facilities at the purchasing centres, such as shelter, water, and lighting.

(1) The factory owner shall ensure that there is no undue delay in the purchase of sugarcane from the farmers.

(1) The State Government shall, after consultation with the Board and the co-operative societies, fix the minimum price of sugarcane payable by the factory owners.

(1) The price of sugarcane supplied to a factory shall be paid to the grower by the factory owner within fourteen days of the supply.

(1) No deduction shall be made from the price of sugarcane except as prescribed by the State Government.

(1) If the price of sugarcane is not paid within the prescribed time, it shall be recoverable as an arrear of land revenue.

(1) Any claim regarding the payment of the price of sugarcane shall be submitted to the Cane Commissioner within the prescribed period.

(1) The State Government may, by notification in the Official Gazette, require the occupier of a factory to make payment of price of sugarcane purchased by him or his agent within such time and in such manner as may be prescribed. The price of sugarcane shall be paid within fifteen days from the date of its supply. Failing such payment the occupier shall be liable to pay interest on the price at the rate and in the manner as may be prescribed. (2) If a dispute arises as to the amount of price payable, the factory shall deposit the amount claimed by the sugarcane grower in the form prescribed, in the office of the prescribed authority within the period prescribed, and shall inform the sugarcane grower and the prescribed authority in writing. The prescribed authority shall, after holding such enquiry as he deems fit, decide the dispute within the period prescribed from the date of such deposit. (3) Any person aggrieved by the decision of the prescribed authority under sub-section (2) may file an appeal before the Collector within thirty days of the decision. The Collector shall, after hearing the parties and holding as much enquiry as he considers necessary, pass such order as he deems fit. (4) The order passed by the Collector under sub-section (3) or the decision of the prescribed authority under sub-section (1) or (2), as the case may be, shall be final.

The State Government may, by notification in the Official Gazette, provide as follows: (a) That within the notified area, the price of sugarcane supplied to a factory shall be paid as per the price fixed by the Government at the rate of Rs. 1 per quintal or such higher rate as may be notified. (b) That the factory shall pay to the grower the price of sugarcane at the rate of Rs. 1 per quintal or such higher rate as may be notified: Provided that clause (b) shall not apply to factories which are closed for the crushing season.

(1) The occupier of a factory or his agent shall work with the sugarcane growers or cooperative societies for the supply of sugarcane in accordance with the prescribed manner. (2) The State Government may, by notification, regulate the purchase of sugarcane by factories. (3) The occupier of a factory shall pay interest on the arrears due, at the rate prescribed under section 51, and the amount shall be recoverable as arrears of land revenue. (4) The owner of the unit shall pay the price at the rate fixed by the Government, and any failure to do so shall result in the recovery of the amount with interest as arrears of land revenue. (5) The Central Government reserve the right to fix the price of sugar or any other sugarcane product, and such order shall be binding.

(1) Interest on the arrears of payment as referred to in section 50 shall be payable in accordance with the provisions of sections 43, 44 and 48 at the rate as prescribed. (2) The rate of interest under sub-section (1) shall not be less than the rate prescribed by the Reserve Bank of India, as amended from time to time.

If any person contravenes or attempts to contravene or abets the contravention of any of the provisions of this Act or any order made thereunder, he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to Rs. 5,000 or with both, and in the case of a continuing contravention, with a further fine which may extend to Rs. 1,000 for each day after the first, during which the contravention continues.

Any co-operative society or group of sugarcane growers registered under the Bihar Co-operative Societies Act, 1935 (Bihar Act No. 6, 1935) may carry on the business of supply and sale of sugarcane as prescribed by the State Government.

(1) The Bihar Sugar Factories Control Act, 1937 (Bihar Act VII, 1937) and the Bihar Sugarcane (Regulation of Supply and Purchase) Third Ordinance, 1981 (Ordinance No. 184, 1981) are hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken in exercise of any power conferred by or under the said Act or Ordinance shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act, as if this Act was in force on the day on which such thing was done or action was taken.