Chapter VI PRICE FLUCTUATION FUND

[(2) The Fund shall be made up of an initial contribution of rupees one crore and of such further contributions to the Fund made by the State Government, from time to time, for meeting any liability referred to in sub-section (1) of section 34, only when the balance in the Fund is inadequate for that purpose, and of the amounts credited to the Fund, from time to time, in accordance with sub-section (2) of section 30 : Provided that the further contribution by the State Government to the Fund as aforesaid shall be met from the Capital Formation Fund established under section 35A, and the State Government may be required to make additional contribution to the said Fund in consequence thereof, as may be needed for the purpose of that Fund, under appropriation duly made in that behalf. (3) The amount available in the Price Fluctuation Fund may be utilised as margin money or for other purposes of the Capital Formation Fund established under section 35A for the operation of the scheme, carrying interest at the rate often per cent. per annum or such other rate as may be fixed, from time to time, by the State Government.

Accounting of difference between the guaranteed price and the final price

1. (1) Where for any cotton season, the final price is less than the guaranteed price, the amount of difference shall be paid from and debited to the Fund.
2. (2) Where for any cotton season, the final price is more than the guaranteed price of cotton, subject to the provisions of section 32, [the amount of twenty-five per cent, of] the difference shall be credited to the Fund as provided by [sub-section
3. (1) of section 30.]

All other matters connected with the Fund, including the manner in which the Fund shall be maintained, operated and expended, shall be regulated by rules made in this behalf.

CHAPTER VIA CAPITAL FORMATION FUND

1. (1) For providing margin money or equity base for generation of additional requirement of funds for the proper and continuous operation of the scheme which are to be borrowed, from time to time, from the credit institutions, a separate account is hereby established to be called the Capital Formation Fund (hereinafter in this Chapter referred to as "the Fund").
2. (2) The State Government shall, under appropriation duly made in this behalf contribute and pay, from time to time, into the Fund an aggregate sum of not less than Rs. 25 crores, on or before the 31st March 1985, including any contributions already made by it for the purposes of this Fund before the commencement of the Maharashtra Raw Cotton (Procurement, Processing and Marketing) (Retrospective Extension of Duration and Amendment) Act, 1981.
3. (3) Notwithstanding anyting contained in this Act or any other law for the time being in force, the market committee or the authorised co-operative society or person making deductions under section 27 shall, while making payment to any tenderer, also deduct a sum equal to such per cent, (not exceeding three per cent.) of the guaranteed price, as the State Government may, from time to time, specify by notification in the Official Gazette, fifty per cent, of which as the contribution of the growers to the Fund and the remaining fifty per cent, as their contribution for the developement of industrial co-operatives based on cotton and shall pay the sum so deducted and collected into the Fund in such manner and within such time as the State Government may, by general or special order, direct. 4[Explanation.—In this sub-section, the expression "industrial co-operatives based on cotton" would also mean and include, "industrial co-operatives based on cotton stalk, that is, a stem of cotton plant or any other part of a cotton plant".].
4. (4) Any agent appointed by the State Government under section 42 shall contribute and pay into the Fund every year a sum of not less than such per cent, (not exceeding three per cent.) of the agency charges payable to him as the State Government may, by general or special order, direct.
5. (5) The Fund shall be used for the purposes for which it is established including the purpose referred to in the proviso to sub-section
6. (2) of section 33 and operated by such agency as may be authorised by the State Government.
7. (6) Separate accounts shall be maintained of the different sources from which contributions or other income is received, and the amount standing to the credit of the Fund at the time of expiration of this Act shall, as far as possible, be distributed in proportion to their contributions amongst the State Government, the tenderers and the agent, in such manner and subject to such deductions (if any) as the State Government may, by general or special order, determine.
8. (7) All other matters connected with the Fund, including the manner in which the Fund shall be maintained, operated and expended or utilised, shall be regulated by rules made in this behalf.]