Amendment to the Essential Commodities Act 1955 and Sugarcan

Thursday, October 29, 2009

Amendment to the Essential Commodities Act 1955 and Sugarcane (Control ) Order 1966

The Union Cabinet today gave its ex-post approval to changing the concept of “minimum price” to “fair and remunerative price” of sugarcane by Amendment to section 3 (3C) of the Essential Commodities Act, 1955 by promulgation of EC (Amendment & Validation) Ordinance 2009 on 21.10.2009 and consequential amendment to the Sugarcane (Control) Order, 1966 vide Order dated 22.10.2009.

Following these amendments, a fair and remunerative price of sugarcane to be paid by sugar mills in 2009-10 sugar season has been approved by the Government at Rs.129.84 per quintal linked to 9.5 % recovery subject to a premium of Rs.1.37 per quintal for every 0.1 per cent increase in the recovery above 9.5 per cent. This price will be uniformly applicable in all the States.

The deletion of the proviso has been made to make the wording of item (g) free of any future ambiguity regarding working of the margins of risk and profit and also to reduce the possibility of litigation on computation of fair and remunerative price.

By introducing F&RP from 2009-10 sugar season, the sugarcane farmers will get a higher price for sugarcane in 2009-10 sugar season as compared to Rs.107.76 per quintal which was fixed on 25th June, 2009.