Chapter V MODE OF FIXING AND PAYMENT OF PRICE FOR COTTON TENDERED AT COLLECTION CENTRES

1. (1) At the commencement of every cotton season the Cotton Co-ordination Committee, as established under sub-section (2), shall recommend to the State Government the guaranteed prices for different varieties or grades of cotton and, where necessary, also of ginned cotton. The State Government shall, in accordance with the recommendation of the Cotton Co-ordination Committee, notify in the Official Gazette and in such other manner as it deems fit, the guaranteed prices for different varieties or grades of cotton and, where necessary, also of ginned cotton.
2. (2) The State Government shall appoint a Cotton Co-ordination Committee. It shall consist of the following :--
   • (a) the Secretary to Government of Maharashtra, Agriculture and Co-operation Department (Co-operation wing);
   • (b) a representative each of the Union Ministry of Agriculture and the Union Ministry of Commerce (Department of Textiles);
   • (c) the Textile Commissioner;
   • (d) the Chairman-cum-Managing Director, Cotton Corporation of India Limited;
   • (e) two representatives of the Government of Maharashtra;
   • (f) a representative of the Maharashtra State Co-operative Marketing Federation or such other body as may be appointed by the State Government as its agent to give effect to the provisions of the Act.]

1. (1) Every tenderer of cotton at a collection centre shall in the first instance be entitled to receive eighty per cent. of the guaranteed price for the quantity of cotton tendered by him [which shall be payable to him] in lump sum or in such instalments, not exceeding two, as the State Government may, from time to time, having regard to the availability of the funds, by general or special order determine. The payment of eighty per cent. of the guaranteed price in this manner shall be the advance price payable to the tenderer.
2. (2) The difference between the guaranteed price and the advance price shall be payable to the tenderer [within a period of three months] after the close of every cotton season] : Provided that, where the payment of the advance price or any part thereof is deferred for any reason or the difference between the guaranteed price and the advance price is not paid immediately after the close of any cotton season, there shall be paid to the tenderer by or on behalf of the State Government interest on the amount which remains unpaid, from the date of tender of cotton by him or from the close of the cotton season, as the case may be, till the date of payment of such amount, at such rate not less than ten per cent. per annum, as the State Government may, from time to time, by general or special order, specify.]

[Subject to the provisions of the last preceding section, the advance price] [and the difference between the guaranteed price and advance price] shall be paid to the tenderer through the market committee [or through any co-operative society or person authorised by the State Government in this behalf] after making any deductions as required by the next succeeding section.

The market committee or the authorised co-operative society or person, as the case may be, may deduct from [the advance price, and the difference, between the guaranteed price and advance price, to be paid to a tenderer of cotton] any sums [and due to any co-operative society, or any dues which the market committee is authorised to deduct by or under the Maharashtra Agriculture Produce Marketing (Regulation) Act, 1963, in respect of any notified produce, to such extent and [in such manner, as the State Government may, notwithstanding anything contained in this Act or any other law for the time being in force, by general or special order, direct] and pay the balance to the tenderer : Provided that, the deductions may be made in such instalments as may be deemed fit, keeping in view [any sums due from the tenderer which are recoverable under this Act and the quantity of cotton] the person concerned is likely to tender from time to time in future :] Provided further that, where the payment of any sum deducted under this section by or on behalf of the State Government or by or on behalf of any co-operative spinning mill as sum due to a co-operative society is deferred for any reason, there shall be paid to the society by or on behalf of the State Government or by or on behalf of the co-operative spinning mill, interest on the sum so deducted and payable to the society, from the date on which the sum due becomes payable till the date of payment, at such rate not less than ten per cent. per annum, as the State Government may, from time to time by general, or special order, specify.]

1. (1) The State Government shall cause the [cotton] pooled under section 22 [ginned or pressed] into bales ; and shall, subject to the directions (if any) issued by Textile Commissioner under any law for the time being in force, cause [the bales or ginned cotton to be sold] or otherwise disposed of in the prescribed manner.
2. (2) Subject to sub-section (1), [the bales or ginned cotton shall be sold] or disposed of—
   • (a) at such procurement prices as may be fixed by the Central Government or by the Textile Commissioner on the advice of the Agricultural Price Commission under any law for the time being in force, for the different varieties of cotton grown in the country;
   • (b) in any other case, [in the prescribed manner.] [(2A) The State Government shall further cause the cotton pooled under section 22 to be released for sale at such prices and in quantities as may be specified by the Cotton Co-ordination Committee established under sub-section
3. (2) of section 24.] [(3) Notwithstanding anything contained in this section it shall be lawful, for the State Government to set aside such quantity of kapas pooled under section 22 as it thinks necessary, having regard to the interests of the growers, for meeting any requirements of students undergoing training at the approved basic training schools in the State, and sell kapas for the purpose at such price as it may fix in that behalf.]

[29.

1. (1) Soon after the 30th September succeeding each cotton season, or soon after any other date (which may be earleir or later than the 30th September) specified by the State Government by notification in the Official Gazette, the State Government shall, in consultation with the Advisory Board, fix in the prescribed manner the final price for different varieties or grades of kapas or ginned cotton acquired during the said cotton season, and notify the final price in the Official Gazette and in any other manner as it thinks fit. In fixing the final price, regard shall be had to the price at which bales of cotton, ginned cotton, kapas, cotton seed and cotton waste acquired during the cotton season immediately preceding were sold and the stocks on hand on the 30th September or the specified date as the case may be ; and all expenditure incurred on the handling and ginning of kapas, the handling and pressing into bales of ginned cotton and the handling of cotton bales, cotton seed and cotton waste shall be taken into consideration : Provided that, for arriving at the final price of each variety or grade of cotton, the closing stocks not disposed of and on hand on the 30th September or the specified date, as the case may be, shall be valued at the average sale price or the market price whichever is lower, obtained for such variety or grade of cotton sold earlier in the season.
2. (2) Where after the sale of any undisposed stocks, either wholly or partly, the total amount realised for the last preceding cotton season is more than the total amount calculated at the final price fixed as above, the excess amount shall be credited to the Price Fluctuation Fund and where it is less, the deficit amount shall be debited to, and paid from, the said Fund. Where part of the undisposed stock still remains undisposed at the end of the subsequent season, that part of the stock shall be carried forward as the opening stocks and the accounts of the Fund for the previous season shall be finalised and closed.
3. (3) Where as a result of the audit of the accounts, any error is noticed and adjustments are required to be made, and on account of such adjustments any excess or deficit in relation to the total amount calculated as the final price fixed as above is found, the excess amount shall be credited to, and the deficit amount shall be debited to, and paid from, the said Fund.]

[30.

1. (1) After the final price is fixed and notified by the State Government, if that price is more than the guaranteed price, every person, who or on whose behalf kapas or ginned cotton was tendered at the collection centre, shall be paid [seventy-five per cent, of the difference between the final price and the guaranteed price, as the additional price.]
2. (2) The balance [of twenty-five per cent.] of the difference referred to in sub-section
3. (1) shall be credited to the Price Fluctuation Fund.]

The payment of any amount to be made to any person under the last preceding section, shall be made in the same manner and shall be liable to the same deductions (if any) as laid down in sections 26 and 27.

If in any cotton season, the amount at the credit of the Price Fluctuation Fund is equal to or more than 30 per cent. of the average total sales of cotton during the three preceding seasons, the entire amount realised in excess of the guaranteed price shall be distributed and paid [as further additional price] to the persons concerned, in the same manner and subject to the dudctions (if any) as laid down in sections 26 and 27. [After the expiry of this Act, the balance in the Fund shall be distributed among the tenders in the prescribed manner.]