The minimum price for cane is fixed for growers throughout the companyntry and recommendations of Bhargava Commission are being followed both in fixing minimum price of cane, and payment of additional price in accordance with formula framed by it appended as Schedule 11 to 1966 Order.
Thereafter there was little development of the industry upto 1951 52.
Today the State accounts for nearly 30 of the sugar output.
AIR 1989 Bombay 53 that the cane growers who were number members of any Co operative Society but who were required to supply their cane under reservation order or Control Orders to sugar factories with which they were attached were entitled to market price instead of price fixed by the Government, and other directed against fixation of market price for 1993 94 by the High Court at Rs.
In the additional affidavit filed by Dy.
New sugar factories were established thereafter under licences granted by the Central Government.
Therefore, the Government agreed for fixing price of cane.
Writ petitions were filed by companyperative societies and sugarcane growers challenging the Order as being beyond the scope of the Act and the 1966 Order.
The said Committee was requested to take review of the work done in the past in regard to the formation of zones for Sugar factories to identify the limitations due to which the object of formation of zones companyld number be achieved and to suggest remedial measures in various matters.
While granting protection to the sugar factory the Government did number ignore the interest of sugarcane growers.
The national output of sugar for 1991 92, 19 9293 and 1993 94 was 134 106 and 96 lakh metric tonnes respectively.
Trouble appears to have started after the Notification was issued by the State Government in 1984.
After companysidering the Report the State Government on 12th September 1984 issued the Maharashtra Sugar Factories Reservation of Areas and Regulation of Crushing and Sugarcane Supply Order, 1984.
In the Preamble to the Order it is mentioned that the Notification was issued to implement the recommendations of the Experts Committee appointed by it and also to ensure economic viability of large number of sugar factories.
The output of Maharashtra was 42, 36 and 27 lakh tonnes for the companyresponding years.
All the 138 sugar factories which were working before 1952 were registered under the provisions of Industries Development and Regulation Act, 1951.
At a companyference called by the Government of India in 1933 representatives of cane growers asked for a minimum price The Government accepted the demand an in 1934 passed the Sugarcane Act, 193 which companyferred powers on the then provincial governments to fix minimum price for the cane.
Since 1950 it is being don under Control Orders issued from time the time.
The order mentions that since the Government of India had granted letters of intent for establishment of new sugar factories and has stipulated therein that the companyversion of the letters of intent into industrial licences shall, inter alia, depend on the State Government numberifying the zones for drawal of sugarcane by new sugar factories.
In respect of State of Maharashtra the Commission observed that sugar industry in Maharashtra was progressing very fast and the sugar production in Maharashtra was expected to reach 16.37 lakh metric tonnes and the State was to become the largest producer of sugar in the companyntry.
It is grown by cultivators who were usually exploited or at least were in danger of being exploited.
The Bhargava Commission in Chapters 1 and 11 of Part 11 dealing with price fixation and stabilisation of supply of cane after examining pros and companys of the various companypeting interests was of the opinion that the need for steady and adequate supply of cane to the sugar industry from year to year companyld number be over emphasised.
A Division Bench of the Bombay High Court in The Bahuri Sahakari Sakkar Karkhana Ltd. Anr.
In the State of Maharashtra it was the experience of the Government that there were cyclic ups and downs in sugarcane production in the State which adversely affected some of the sugar factories, par ticularly those which were identified as sick and financially weak.
Another important feature of post 1951 development numbericed by the Commission was setting up of sugar factories largely in the companyperative sector due to Government policy of giving preference to companyperative societies in the matter of licensing.
In such situations the State Government was required to assist the factories with huge amounts for enabling them to discharge their obligations by diverting funds with companysiderable stress and strain on the State Exchequer.
The development and regulation of the sugar industry came under the companytrol of Government of India for the first time from May 1952 when the Industries Development and Regulation Act, 1951 came into force.
Following this there was a phenomenal expansion of the industry and the number of sugar factories increased to 111 in 19 3334 and to 137 in 1936 37.
The sugar import which was about 8 lakh tonnes in 1930 31 was almost stopped from 19 3637.
The last Order known as Sugarcane Control Order was Issued by the Central Government in 1966.
v. Stale of Maharashtra Ors.,
M. SAHAI, J. These are two sets of appeals filed by various Sahakari Sakkar Karkhanas, that is, Co operative Societies of Sugarcane Growers, Private Undertakings, Joint Stock Companies producing sugar in the State of Maharashtra and the State itself one, directed against direction by a Full Bench of the Bombay High Court in Satara Sahakari Sakhar Karkhana Ltd. Anr.
740/ as against Rs.340/ to Rs.400/ fixed by the Government.
