Sindh cabinet approves Bill to amend sugar industry law

18 Apr, 2007

The Sindh Cabinet on Tuesday decided to move a bill to amend the Sugar Factories Control Act-1950 to establish a seven-member board to systematise sugar production, enforce restrictions on cultivation of certain varieties of sugarcane, regulate sale and purchase of sugarcane, and to fix its minimum price.
Sindh Chief Minister Dr Arbab Ghulam Rahim, giving briefing on the decisions of the Cabinet, said that the amendments in the Sugar Factories Control Act, 1950 were overdue in the interest of farmers, sugar mills and the consumers as these would protect the rights of each stakeholder.
He said that these eight amendments would facilitate management of sugarcane and sugar production and its pricing mechanism. He said that the Cabinet had decided to begin wheat procurement, henceforth, from February 15. A feasibility report on silos project would also be drawn up to ensure wheat stock management for longer duration.
He said that complete stock of wheat, that was available with the Sindh Government, had been disposed of and only 45,000 tons is in the stock--for a rainy day. He said that faulty procurement of wheat had adversely affected its prices, and the farmers could not get the right price. "Had there been timely procurement, they should have got better price," he added.
The chief minister said that his Cabinet discussed federal government proposals regarding recommendations of National Commission for Government Reforms and decided that it needed detailed and involved study. He said that Sindh had its reservations on it and it would be 'most appropriate' to look into the recommendations keeping in view the implications, if implemented in a haste.
He said that provincial autonomy was being discussed these days and at this stage consideration of government reforms seemed out of the place. "The federal government should send us the complete draft of recommendations and permit the cabinet and the provincial assembly to discuss it so that a consensus could be developed on the validity of the proposal and the need for its implementation."
He said, "Dr Ishrat Hussein, if he so desires, can make a presentation to us."
Rahim said that the proposal floated by the Qatar government to invest in Pakistan in hotel industry, cement sector and animal husbandry (cattle farming) was also discussed in the Cabinet meeting. It was decided that to begin with, out of 4000 acres land available in Nabisar, 3000 acres would be allotted to Qatari investor for rearing meat animals.
He said that the Qatar government wanted 10,000 acres land but to begin with only 3000 acres were being allotted. He said that around Kinjhar and elsewhere in Thatta plenty of land is available which could be put to gainful use. He said that thousands of acres of land had already been allotted to many people "who are yet to utilise it". In such circumstances, it would be better to allot land to those who would bring investment to Pakistan.
He said that an agreement of investment between Qatar and Pakistan would be signed by the heads of states of the two countries. It would bring investment, job opportunities and technology for the advancement of animal husbandry in Pakistan.
The chief minister briefly commented upon the recent news regarding a "deal' between President General Pervaz Musharraf and PPP chairperson Benazir Bhutto and said that it looked good.
He said that Benazir had shown willingness to accept President Musharraf as President and that, too, in uniform. "It is a welcome change," he added. He said that the PPP had retracted its entire previous stance on a number of political issues and had agreed to come to "our fold".
When asked to comment on his earlier statement that Benazir and her party were a party of looter and that he would not align himself with the looters, he said that political exigencies had their own compulsions. He said that PLM (Q) was strong enough to contest elections along with its coalition partners and if the PPP wanted to come it would do so in its own interest but on "our terms".
1. (1) This Act may be called the Sugar Factories Control (Sindh Amendment) Act, 2006.
2. In the Sugar Factories Control Act, 1950, in its applications to Sindh, hereinafter referred to as the said Act, for sections 3 and 4, the following shall be substituted:-
SUBSTITUTION OF SECTION 3 AND 4 OF ACT XXII OF 1950:
"3 Establishment of the Board:- (1) Government may, by notification, establish a Board consisting of -(i) Secretary to Government of Sindh, Agriculture Department Chairman and members include Cane Commissioner, Representative of the Pakistan Sugar Mills Association Sindh Zone, Representative of the Sindh Abadgar Board, Representative of the Chamber of Agriculture, Representative of the Sugarcane Growers Association and such other official and non-official members as may be appointed by Government.
(2) A non-official Member shall hold office at the pleasure of Government.
(3) A non-official Member may, by writing under his hand, addressed to Government, resign his office.
(4) The meetings of the Board shall be held as and when convened by the Chairman."
3.In the said Act, for section 6-A, the following shall be substituted: Substitution of section 6-A of Act XXII of 1950. "6-A Appointment of Additional Cane Commissioner: - Government may, by notification, appoint any officer, not below the rank of a BPS-19 officer to be an Additional Cane Commissioner, who shall subject to control and direction of the Cane Commissioner exercise such powers and perform such functions of the Cane Commissioner as may be specified in the notification.
4.In the said Act, for section 14-A, the following shall be substituted: - Substitution of section 14-A of Act XXII of 1950. "14-A. Prohibition of cultivation of certain varieties of sugarcane: - The Cane Commissioner may on the recommendations or in consultation with the Board by an order in writing, prohibit the cultivation in any area of any variety of cane declared to be unsuitable under section 18.
5. In the said Act, for section 15, the following shall be substituted: Substitution of section 15 of Act XXII of 1950. "15. (1) Sale, Purchase of cane: - No person other than the cane grower shall sell or supply cane to an occupier of a Factory.
(2) No occupier of a Factory shall purchase the cane through a middle man but all purchases shall be made directly from the cane grower."
5. In the said Act, for section 16, the following shall be substituted: Substitution of section 16 of Act XXII of 1950.
"16 Fixation of Minimum Price: - (1) Government may, on the recommendations of the Board or otherwise by notification determine minimum price of the cane having regard to -
(a) The cost of production of sugarcane; and (b) the return to the grower from alternative crops and the general trend of prices of agricultural commodities.
2. The price determined under sub-section (1) may from time to time be reviewed.
(3) The occupier of a Factory shall pay quality premium at the end of crushing season at such rates as may be determined by Government in proportion of sucrose recovery of such Factory in excess of base level sucrose contents viz. 8.7 per 100 kilograms.
(4) The price of the cane shall be paid to the cane grower by issuing payee's account cheque.
(5) If the payment under sub-section (4) is not made within fifteen days of supply of the cane, mark-up at the rate as may be fixed by Government by notification shall also be paid to the cane grower in addition to the principal amount.
(6) No occupier of a Factory shall make any deduction except the deduction as may be prescribed from the amount payable to the cane grower under sub- section (4).
(7) No occupier of a Factory shall, except with the approval of the Cane Commissioner, deduct any weight from the total weight of the cane on account of its unsuitable variety or immaturity or for any other reason."
7. In the said Act, for section 17-A, the following shall be substituted: - Substitution of section 17-A of Act XXII of 1950.
"17-A Installation of core sampler: Every occupier of a Factory shall install a core sampler of the specification and in the manner as may be prescribed."
8. In the said Act, for section 21, the following shall be substituted: - Substitution of section 21 of Act XXII of 1950.
"Penalty: 21(1) Any person contravening the provisions of this Act, or any rule or order made thereunder except the provisions of section 16; shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to rupees two million, or with both.
(2) Any person contravening the provisions of section 16. shall be punishable with imprisonment for a term which may extend to two years, or with fine not exceeding twice the price of the sugarcane and where a person is convicted, the Court may direct such person to make payment of arrears of price of cane or premium, if any, to the person concerned.
(3) Offence under this Act shall be cognisable and compoundable but no police officer shall take cognisance of the offence except upon a complaint in writing made by or under the authority of the Cane Commissioner.
9. In the said Act, in section 22 for clause (iii), the following shall be substituted: - Substitution of clause (iii) of section 22 of Act XXII of 1950.
"(iii) No Court inferior to that of an Assistant Sessions Judge shall try any offence under this Act on any order on rule made there under."

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