REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 44] NEW DELHI, FRIDAY, FEBRUARY22, 1974/PHALGUNA 3, 1895
Separate paging is given to this Part in order that it may be filed as a separate compilation
MINISTRY OF AGRICULTURE (Department of Food) RESOLUTION New Delhi, the 22nd February 1974
No. 15-9/73-S.Py.—The Government of India, in its letter No. 18(2)-Tar/72 dated the 17th March, 1972, requested the Tariff Commission to conduct an enquiry into cost structure of sugar and fair price payable to the sugar industry afresh, as the cost schedules and the zones recommended by it in its 1969 Report for the three sugar years (October to September), viz., 1969-70, 1970-71 and 1971-72 were based on data relating to the years 1968-67, and since then there has been a change in the cost structure as a result of the Award of the Second Central Wage Board for sugar industry, and other factors. The Commission has submitted its full and final Report at the end of September, 1973. The recommendations of the Commission in regard to zoning of sugar factories and the cost schedules prepared by it for arriving at the ex-factory prices of sugar have been considered by the Government.
2. The Tariff Commission had recommended the following 15 zones in its 1969 Report, namely:—
1. Punjab 2. Haryana. 3. Rajasthan. 4. West Uttar Pradesh, 5. Central Uttar Pradesh. 6. East Uttar Pradesh. 7. North Bihar. 8. South Bihar.
(175)
176 THE GAZETTE OF INDIA EXTEAORDINARY [PART I—SEC. 1)9. Gujarat.
10. Madhya Pradesh. 11. Maharashtra. 12. Mysore (now Karnataka). 13. Andhra Pradesh. 14. Tamil Nadu & Pondlcherry. 15. Orissa, Assam, Kerala and West Bengal.
3. The Commission was Informed by the industry that the 13 zones, on the whole, had worked fairly well. However, suggestions were made to the Commls-!, sion for splitting up some of the zones. After considering them, the Commission decided to recommend only that for reasons of location, climatic conditions and other relevant factors, Kerala should be segregated from the other three States of Orissa, Assam and West Bengal, and constituted into a separate zone making a total of 16 zones. The Government have already revised the ex-factory prices of levy sugar of 1973-74 production with effect from the 15th December, 1973 accepting this recommendation and also adopting the cost schedules prepared by the Tariff Commission (vide Table 20 of the Report).
4. The cost schedules prepared by the Commission are for D-29 grade. For other grades of sugar, including raw sugar, the Tariff Commission has maintained the differentials already fixed by the Government.
5. With regard to return, the Tariff Commission, after considering the various suggestions made to it, has recommended that a return of Rs. 12.60 per quintal of sugar would be a fair one to enable the industry to provide for payment of a reasonable dividend on equity capital and interest charges on borrowings and- leave some residue for addition to Reserves. The return refers to sugar as a whole and not to only levy sugar as such or to levy sugar and free sale sugar individually, nor is it intended to refer to individual units. It t§ Intended to apply to the sugar Industry, as a whole. The Government of India have accepted this recommendation.
6. The Commission, while Indicating that every i per cent variation in the interest rate of 10 per cent allowed by it in its cost schedules would call for an adjustment in the price of sugar by 35 palse per quintal, has, however, left It to the discretion of the Government to consider whether having regard to the realisa- tion that the industry may make from its free market sales, it is necessary to allow In the price of sugar the incidence of the increase in the interest charges every time such an increase pccurs, and if so, to what extent. The Government have noted this recommendation.
7. The Tariff Commission has also made recommendations on several other matters, relating to prlce/supplles/development of sugarcane, augmenting of sugar production, assistance for encouraging cultivation of sugar beet and production of beet sugar, economical use of molasses, bagasse etc. These recommendations will be considered in juxtaposition with the recommendations of the Sugar Industry Enquiry Commission, whose final report Is expected by the end of February, 1974, and in consultation with the other concerned Departments, State Governments, "tc. Decisions on these matters will be taken after such consideration.
ORDER
Ordered that a copy of the Resolution be communicated to all concerned and that it be published in the Gazette of India.
G. C. L. JONEJA, Secy.
[PART I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 177 178 THE GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC. 1]!"JUNTKJ1 BY THE MANAOER, GOVERNMENT OF INDIA PRESSj MINTO KOAD, NEW r " 3 Hl AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI. 1 9 74