The minimum purchase price of sugarcane at the factory gate and cane purchase centers for the crushing season 2015-16 has been fixed at Rs 180 per 40 kg or Rs 450 per 100 kg or Rs 4,500 per metric ton, says a notification issued by the Punjab food department.
However, the sugar factories will be authorised to deduct transport charges incurred by them on the cane purchased at purchase centers and other locations away from the factory gate from the purchase price at the rate of Rs 1.25 per 100 kg per kilometer subject to a maximum deduction for a distance of 40 kilometer from the factory gate.
According to another notification issued by the food department, the sugarcane development cess for crushing season 2015-16 has been fixed at Rs 3 per 40 kg or Rs 7.50 per 100 kg or Rs 75 per metric ton. However, the incidence of the cess amount shall be shared equally by the sugar mills and the growers selling sugarcane to the mills. In case the sugarcane is obtained from the sugar mills’ own farm, the cess at the rate of Rs 3 per 40 kg or Rs 7.50 per 100 kg or Rs 75 per metric ton shall be paid by the mills.