Section 9 of The Sugar Export Promotion Act, 1958
- (1)The export agency shall, at such time as it thinks fit, make to the owners who have delivered sugar to it under this Act, payments determined in accordance with the provisions hereinafter in this section contained.
- (2)From the total sale proceeds in respect of the quantity fixed for export under section 4 for any year, there shall be deducted the total expenditure incurred by the export agency in respect of the sugar, whether by way of administrative expenses or otherwise, and the balance shall be apportioned among the owners in proportion to the quantity of sugar delivered by them respectively during that year.
- (3)In making any distribution under this section, the export agency shall make such adjustments as may be necessary having regard to the grade of sugar delivered by any owner, the adjustments being made on the basis of sugar of ISS-E-29 grade and with reference to the price differential schedule for different grades of sugar which the Central Government may, by notification in the Official Gazette, publish in this behalf.
- (4)Notwithstanding anything contained in this section and subject to the rules which may be made in this behalf, the export agency may make on account payments to owners against documents of delivery of sugar furnished by them, and such payments shall be adjusted at the time of final payment.
Summary
- The export agency must make payments to owners who have delivered sugar under this Act at such time as the agency thinks fit.
- The payments are calculated by taking the total sale proceeds from the export quantity fixed under Section 4 for any year, deducting the total expenses of the agency (including administrative expenses), and dividing the balance.
- The remaining balance is divided among the owners in proportion to the actual quantity of sugar they delivered during that year.
- The export agency must adjust payments based on the grade of sugar delivered, using ISS-E-29 grade as the baseline and following the price differential schedule published by the Central Government.
- The export agency can make advance payments (called on account payments) to owners when they submit delivery documents, which will be adjusted when final payments are made.
Practical examples
FAQ
1. How does the export agency calculate the final payment for each factory owner?
It takes the total sale proceeds for the year's export sugar, subtracts all of the agency's expenses, and divides the remaining balance among the owners based on how much sugar each owner delivered.
2. What baseline grade is used to adjust payments for different qualities of sugar?
The adjustments are made on the basis of ISS-E-29 grade sugar.
3. Who decides the price differences for various grades of sugar?
The Central Government publishes the price differential schedule in the Official Gazette.
4. Can owners get paid before the final accounts are calculated at the end of the year?
Yes, the export agency can make on account payments (advance payments) against delivery documents, which are adjusted during final payment.
5. What expenses can the export agency subtract from the total sale proceeds?
It can deduct all expenditures incurred in respect of the sugar, including administrative expenses.
Test yourself
Q1.How is the net balance of sugar sale proceeds divided among factory owners?
Q2.What is the baseline sugar grade specified in Section 9 for making quality adjustments?
Q3.Who publishes the price differential schedule used for adjusting payments?
Q4.Under Section 9, what can the export agency deduct from the total sale proceeds before paying owners?
Q5.What are the advance payments made to owners against delivery documents called?
Q6.Which section's fixed quantity of sugar is referenced to calculate the total sale proceeds under Section 9?