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The U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953

Uttar Pradesh · state statute
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2 
 
 UTTAR PRADESH SUGARCANE (REGULATION OF SUPPLY AND 
PURCHASE) ACT, 19531 
[U. P. ACT No. XXIV of 1953] 
 Amended by 
U. P. Act No. XXI of 1956 
U. P. Act No. III of 1960 
 U. P. Act No. XXXIV of 1961 
U. P. Act No. VI of 1962 
U. P. Act No. IV of 1964 
 U. P. Act No. XI of 1966 
U. P. Act No. VI of 1971 
U. P. Act No. II of 1972 
 U. P. Act No. VII of 1974 
U. P. Act No. XXVIII of 1974 
U. P. Act No. X of 1976 
 U. P. Act No. XXXIV of 1976 
U. P. Act No. 30 of 1979 
U. P. Act No. 17 of 2006 
 U. P. Act No. 33 of 2007 
U. P. Act No. 22 of 2008 
U. P. Act No. 23 of 2008 
U. P. Act No. 08 of 2019 
U.P. Act No. 19 of  2020 
U.P. Act No. 05 of 2021 
U.P. Act No. 38 of 2021 
U.P. Act No. 10 of 2026 
 [ Passed in Hindi by the Uttar Pradesh Legislative Assembly 
on August 13, 1953 and by the Uttar Pradesh Legislative Council 
on September 5, 1953. 
Received the assent of the President on October 5, 1953 
under Article 201 of the Constitution of India, and was published 
in the Uttar Pradesh Gazette Extraordinary, dated October 9, 
1953. ] 
 AN 
ACT 
to regulate the supply and purchase of sugarcane required 
for use in sugar 2[Factories and Gur, Rab or Khanidsari Sugar 
Manufacturing Units] 
Preamble WHEREAS it is expedient to regulate the supply and 
purchase of sugarcane required for use in sugar 2[Factories and 
Gur, Rab or Khandsari Sugar Manufacturing Units] and other 
connected matters ;   
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  For Statement of Objects and Reasons see U. P. Gazette Extraordinary, dated July 15, 1953. 
2.  Subs. by sec. 2 of U. P. Act no. III of 1960. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
4 
 IT is hereby enacted as follows : 
CHAPTER  I 
PRELIMINARY 
Short title, 
extent and 
commence-
ment 
1. (1) This Act may be called the U. P. Sugarcane (Regulation of 
Supply and Purchase) Act, 1953. 
(2) It extends to the whole of Uttar Pradesh. 
(3) It shall come into force at once. 
Definition 2. In this Act unless there is anything repugnant in the subject 
or contextβ€” 
(a) β€œassigned area” means an area assigned to a factory under 
section 15 ;  
 (b)  1[  *  *  *  *  ] 
(c) β€œCane” means sugarcane intended for use in a factory 2[or 
Gur, Rab or Khandsari Sugar Manugacturing Unit] ; 
 (d) β€œCane Commissioner” means the officer appointed to be 
Cane Commissioner under section 9, and includes an Additional Cane 
Commissioner appointed under section 10 ; 
 (e) β€œCane-grower” means a person who cultivates cane either by 
himself or by member of his family or by hired labour and who is not a 
member of a Cane-growers’ Co-operative Society ;  
 (f) β€œCane-growers’ Co-operative Society” means a society 
registered under the Co-operative Societies Act, 1912, one of the 
objects of which is to sell cane grown by its members and includes the 
federation of such societies registered under section 8 of the said Act ;  
 (g) β€œCollector” includes any person whom the State Government 
may, by notification, appoint to exercise and perform the powers and 
duties of a Collector under this Act ;  
 (h) β€œCouncil” means the Cane Development Council established 
under section 5 ; 
(i) β€œCrushing season” means the period 3[beginning on the 1st 
October in any year and ending on the 15th July next following ; ] 
4[(i-i) β€˜β€˜Ethanol’’ means anhydrous ethyl alcohol of minimum 99 
percentage strength, produced directly either from sugarcane juice or 
B-Heavy molasses or both. 
Explanation: – When a sugar factory produces ethanol from 
sugarcane juice of B-Heavy molasses, the recovery rate in case of such 
sugar factory shall be determined by considering every 600 litres of 
ethanol so produced as equivalent to one ton production of sugar.   
 5[(j) β€œFactory” means any premises, including the precincts 
thereof wherein twenty or more workers are working or were working 
on any day during the preceding twelve months and in any part of 
which any manufacturing process connected with the production of 
sugar by means of vacuum pan process or ethnol either directly from 
sugarcane juice or molasses, including B-Heavy molasses or both as 
the case may be, is being carried on or is ordinarily carried on with the 
aid of mechanical power] ;  
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  Omit. by sec. 3 of U. P. Act no. 17 of 2006. 
2.  Ins. by sec. 2 (1) of U. P. Act no. IV of 1964. 
3.  Subs. by sec. 2 of U. P. Act no. 6 of 1971. 
4. Ins. by sec. 2 (a) of U.P. Act no. 23 of 2008. 
5. Subs. by sec. 2 (b) of U.P. Act no. 23 of 2008. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
6 
 1[(j-i) β€œGur, Rab or Khandsari Sugar Manufacturing Unit” means 
a unit engaged or ordinarily engaged in the manufacture or production 
of gur, rab or khandsari sugar in a reserved area, and which is capable 
of handling sugarcane juice produced with the aid of a crusher driven 
by any mechanical power ; ] 
 2[ (j-ii) β€œInspector” means any person appointed or any officer 
designated as inspector under section 11 ; ] 
 3[(k) β€œOccupier” in relation to a factory or a Gur, Rab or 
Khandsari Sugar Manufacturing Unit, means the person (including a 
company, firm or other association of individuals) who, or the 
authority which, owns or has the ultimate control over the affairs of 
such factory or unit and where the said affairs are entrusted to a 
Managing Agent or a Director or other officer of such person or 
authority, includes such Managing Agent, Director or other officer. 
 Explanationβ€”Notwithstanding that the affairs of a factory or 
unit are entrusted to a Maganing Agent or a Director or other officer, 
the liability under section 17 of the person, who or the authority which 
, owns or has the ultimate control over the affairs of the factory or unit 
shall remain unaffected; ] 
 (l) β€œPrescribed” means prescribed by rules ; 
(m)  4[  *  *  *  ] 
 5[ (n) β€œReserved area” shall mean the area reserved for a factory 
under an Order for reservation of sugarcane areas made under rule 
125-B of the Defence of India Rules, 1962 and when no such order is 
in force, the area specified in an order made under section 15. ] 
 (o) β€œRule” means a rule made under this Act ;  
(p) β€œState Government” means the Government of Uttar 
Pradesh; and 
 (q) β€œSugar Commissioner” means the officer appointed to be 
Sugar Commissioner under section 9 6[and includes an Additional 
Sugar Commissioner appointed under section 10.] 
 CHAPTER  II 
ADMINISTRATIVE MACHINERY 
 3.  7[  X  X  X  X  ] 
 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  Add. by sec. 3 (1) of U. P. Act no. 3 of 1960. 
2.  Ins. by sec. 2 of U. P. Act no. 34 of 1976. 
3.  Subs. by sec. 2 (a) of U. P. Act no. 7 of 1974 and deemed to have been always substituted. 
4.  Omit. by sec. 2 (b) ibid. 
5.  Subs. and be deemed to have been subs. with effect from October 17, 1963 by sec. 2 (2) of U. P. Act no. IV 
of 1964. 
6.  Ins. by sec. 2 (3) of U. P. Act no. 4 of 1964. 
7.  Omit. by sec. 3 of U. P. Act no. 17 of 2006. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
8 
 4.  1[  X  X  X  X  ] 
The 
Development 
Council 
5. (1) There shall be established for the reserved area of a 
factory a Cane Development Council (hereinafter called the Council) 
which shall be body corporate by the name of such area or such other 
name as may be prescribed, having perpetual succession, and subject 
to such restrictions or qualifications as may be imposed and subject to 
such restriction or qualification as may be imposed under this Act or 
any other enactment vested with the capacity of suing and being sued 
in its corporate name, of acquiring, holding, administering and 
transferring property both movable and immovable, and of entering 
into contracts ;  
 Provided that where the Cane Commissioner so directs the 
Council may be established for a larger or smaller area than the 
reserved area of a factory.  
 (2) The area for which a Development Council is established be 
called a zone. 
2[ (3) The Council shall consist of the following, namely : 
 (i) two representatives of the sugar factory concerned, to be 
nominated by the occupier ; 
 3[(ii) seven representatives of the Cane-grower’s Co-operative 
Societies functioning in the reserved area, to be elected by the 
members of the Committees of Management of such societies from 
amongst the members of such societies : 
 Provided that out of seven representatives one representative 
shall be from the persons belonging to the Schedule Castes or the 
Scheduled Tribes and one from the persons belonging to the other 
backward classes and one representative shall be a women ; ] 
 (iii) one representative of the licensed power-driven khand-sari 
manufacturing units in the reserved area, to be elected by their 
owners; 
 (iv) the District Cane Officer ;  
(v) the Sugarcane Protection Inspector ;  
 4[(vi) the Seed Production Officer ;  
 (vii) the Senior Cane Development inspector, who shall be ex-
official Member-Secretary. 
 (3-A) The members of the Council shall elect 5from among the 
five representatives refer to in clause (ii) of sub-section (3) a person to 
be the Chairman of such Council ; ] 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  Omit. by sec. 3 of U. P. Act no. 17 of 2006.  
2.  Ins.  by sec. 2 (a) of U. P. Act no. 10 of 1976. 
3.  Subs. by sec. 2(a) of U. P. Act no. 22 of 2008. 
4. Subs. by sec. 2 (1) (b) of U.P. Act no. 30 of 1979. 
5. Subs. by sec. 2 (2) of U.P. Act no. 30 of 1979. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
10 
 1[(4) The term of council shall be co-terminous with the term of 
Cane Co-operative Society and upon its expiry the council shall be re-
constituted in accordance with the provisions of sub-section (3).] 
 (5) Where a Council is dissolved the following consequences 
shall follow :β€” 
(a) 2[the Chairman and all members but not the Secretary] shall 
on a date to be specified in the order vacate their offices but without 
prejudice to their eligibility for appointment or nomination as member ;  
 (b) the Council shall be reconstituted by the Cane 
Commissioner in accordance with the provisions of sub-section (3) ; 
and 
 (c) the duties, powers and functions of the Council shall, 
pending its reconstitution, be discharged, exercised and performed 3[by 
the Secretary] for such period and subject to restrictions as may be 
specified in the order.  
Functions of 
the Council 6. (1) Functions of the Council shall be :β€” 
(a) to consider and approve the programme of development for 
the zone ;  
 (b) to devise ways and means for the execution of the 
development plan in all its essentials such as cane varieties, cane 
seed, sowing programme, fertilizers and manures,  
 (c) to undertake the development of irrigation and other 
agricultural facilities in the zone ;  
 (d) to take necessary steps for the prevention and control of 
diseases and pests and to render all possible help in the soil extension 
work ;  
 (e) to impart technical training to cultivators in matters relating 
to the production of cane ;  
 (f) to administer the funds at its disposal for the execution of the 
Development Scheme subject to the general or special directions of the 
Cane Commissioner ; and  
 (g) to perform other prescribed functions pertaining and 
conductive to the general development of the zone.  
 
 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  Subs. by sec. 2(b) of U. P. Act no. 22 of 2008. 
2.  Ins. by sec. 4 (b) (i) of U. P. Act no. 7 of 1974. 
3.  Subs. by sec. 4 (b) (ii) of U.P. Act no. 7 of 1974. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
12 
 (2) The State Government may by rule provide for an annual 
meeting of all the development Councils in a district. Every such 
meeting shall be presided over by the Collector.  
Casual 
vacancy 7. A casual vacancy in the Council shall be filled up, as far as 
may be, in the manner stated in sub-section (3) of section 5. 
Council Fund 8. (1) There shall be a fund at the disposal of the Council to 
meet the charges in connection with, the discharge of its duties and 
performance of its functions under this Act. 
 (2) The fund of the Council shall consist of β€” 
(a) grants, if any, made by the Indian Central Sugar-cane 
Committee ;  
 (b) grants, if any, made by the State Government ;  
(c) contributions made by the sugar factories 1[Gur, Rab or 
Khandsari Sugar Manufacturing Units] and Cane-grower’s Co-
operative Societies at rates to be prescribed ; and 
 (d) any other sums which the State Government may require to 
be credited to it. 
Supersession 
of Council 
2[8-A. If at any time, the State Government is, after taking into 
consideration the explanation, if any, of the Council, satisfied that the 
Council has made a willful default in the performance of any of its 
functions and duties under this Act, it may, by notification, supersede 
the Council for such period as may be specified, and shall make such 
arrangements for the performance of the functions and duties of the 
Council, during the period of supersession, as it may deem fit. ] 
Motion of 
Confidence 
against 
Chairman 
3[8-B. (1) A Motion expressing non-confidence against the 
Chairman of a Cane Development Council shall be made and 
proceeded with, in accordance with such procedure as may be 
prescribed. 
 (2) When a motion for non-confidence is carried the Chairman 
against whom it is carried shall cease to hold office forthwith and shall 
be succeded by his/her elected successor who shall be elected 
according to sub-section (3-A) of section 5 of this Act.] 
Sugar 
Commissio-
ner and Cane 
Commissio-
ner 
9. The State Government may for purposes of this Act 
appointβ€” 
(a) a Sugar Commissioner, and  
(b) a Cane Commissioner,  
 who shall perform the duties and exercise all powers conferred or 
imposed upon them by or under this Act ;  
Provided that nothing in this section shall prevent the State 
Government from appointing the same person to be the Sugar 
Commissioners and the Cane Commissioner. 
 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  Ins. by sec. 6 of U. P. Act no. III of 1960. 
2. Ins. by sec. 3 of U. P. Act no. 10 of 1976. 
3. Ins. by sec. 2 of U. P. Act no. 19 of 2020. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
14 
Additional, 
Deputy or 
Assistant 
Cane Sugar 
Commissio-
ner] 
1[10. The State Government may appoint any person or 
designate any Government officer as Additional, Deputy or Assistant 
Cane Commissioner or Additional, Deputy or Assistant Sugar 
Commissioner.] 
Inspectors 11. (1) The State Government may for purposes of this Act 
appoint any persons or designate such officers of the Government, as it 
thinks fit to be Inspectors within such local limits as may be assigned 
to them. 
 (2) The Inspector shall perform the duties and exercise the 
powers conferred or imposed upon them by or under this Act.  
 CHAPTER  III 
SUPPLY AND PURCHASE OF CANE 
Estimates of 
requires-
ments 
12. (1) The Cane Commissioner, may for purposes of section 
15, by order, require the occupier of any factory to furnish in the 
manner and by the date specified in the order to the Cane 
Commissioner an estimate of the quantity of cane which will be 
required by the factory during such crushing season 2[or crushing 
seasons] as may be specified in the order. 
 (2) The Cane Commissioner shall examine every such estimate 
and shall publish the same with such modifications, if any, as he may 
make. 
(3) An estimate published under sub-section (2) may be revised 
by an authority to be prescribed.  
Register of 
cane-growers 
and Cane-
grower’s Co-
operative 
Society or 
Societies 
13. (1) The occupier of a factory shall maintain in the 
prescribed form a register of all such cane-growers and Cane-growers’ 
Co-operative Society or Societies and shall  sell cane to that factory. 
(2) The State Government may, by rules, make provision for the 
followingβ€” 
 (a) correction of entries made in the register and addition of 
new entries, if necessary ; 
(b) fixing of prices in respect of the entries so corrected or 
added in the register and prescribing of the procedure for payment of 
such price ; and 
 (c) the supply of copies of entries made in the register on 
payment of the prescribed fee. 
Power of 
survey, etc. 14. (1) The State Government may, for purposes of section 15, 
by order, provide for β€” 
(a) a survey to be made of the area proposed to be reserved or 
assigned for the supply of cane to a factory and the recovery of the cost 
of such survey from the occupier of the factory ;  
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1.  Subs. by sec. 4 of U. P. Act no. IV of 1964. 
2. Ins. by sec. 2 of U. P. Act no. XXI of 1956. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
16 
 (b) the appointment of an officer for purposes of such survey, 
his duties and powers ;  
(c) the procedure in accordance with which the survey shall be 
made ;  
 (d) the assistance and facilities to be provided to the officer 
appointed in pursuance of clause (b) by the persons owning or 
occupying land in the area ; and  
 (e) such incidental and consequential matters as may appear to 
be necessary or desirable for this purpose.  
 (2) Any amount due from the occupier of a factory in pursuance 
of clause (a) of sub-section (1) shall be recoverable from such occupier 
as an arrear of land revenue.  
Declaration 
of reserved 
areas and 
assigned area 
15. (1) Without prejudice to any order made under clause (d) of 
sub-section (2) of section 16 the Cane Commissioner may, after 
consulting the Factory and Cane-growers’ Co-operative Society in the 
manner to be prescribed β€” 
 (a) reserve any area (hereinafter called the reserved area) ; 
(b) assign any area (hereinafter called an assigned area) ; 
for the purposes of the supply of cane to a factory in accordance with 
the provisions of section 16 during 1[one more crushing seasons as 
may be specified] and may likewise at any time cancel such order or 
alter the boundaries of an area so reserved or assigned.  
 (2) Where any area has been declared as reserved area for a 
factory, the occupier of such factory shall, if so directed by the Cane 
Commissioner, purchase all the cane grown in that area, which is 
offered for sale to the factory. 
 (3) Where any area has been declared as assigned area for a 
factory, the occupier of such factory shall, purchase such quantity of 
cane grown in that area and offered for sale to the factory, as may be 
determined by the Cane Commissioner. 
 (4) An appeal shall lie to the State Government against the 
order of the Cane Commissioner passed under sub-section (1).  
Regulation of 
purchase and 
supply of 
cane in the 
reserved and 
assigned 
areas 
16. (1) The State Government may, for maintaining supplies, by 
order, regulateβ€” 
(a) the distribution, sale or purchase of any cane in any 
reserved or assigned area ; and 
 (b) purchase of cane in any area other than a reserved or 
assigned area. 
 (2) Without prejudice to the generality of the foregoing powers 
such order may provide for β€” 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. Subs. by sec. 3 of U. P. Act no. XXI of 1956. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
18 
 (a) the quantity of cane to be supplied by such cane-grower or 
Cane-grower’s Co-operative Society in such area to the factory for 
which the area has so been reserved or assigned ;  
 (b) the manner in which cane grown in the reserved area or the 
assigned area, shall be purchased by the factory for which the area 
has been so reserved or assigned and the circumstance in which the 
cane grown by a cane-grower shall not be purchased except through a 
Cane-Growers’ Co-operative Society ;  
 (c) the form and the terms and conditions of the agreement to 
be executed by the occupier or manager of the factory for which an 
area is reserved or assigned for the purchase of cane offered for sale ;  
 1 [(d) the circumstances under which permission may be 
grantedβ€” 
(i) for the purchase of cane grown in reserved or assigned area 
by a 2[Gur, Rab, or Khandsari Manufacturing Unit or any person or 
factory] other than the factory for which area has been reserved or 
assigned] ; and 
 (ii) for the sale of cane grown in a reserved or assigned area to 
2[a Gur, Rab, or Khandsari Manufacturing Unit or any person or 
factory] other than the factory for which the area is reserved or 
assigned ;  
 (e) such incidental and consequential matters as may appear to 
be necessary or desirable for this purpose. 
Payment of 
cane price 17. 3 [(1) The occupier of a factory shall make such provision 
for speedy payment of the price of cane purchased by him as may be 
prescribed.] 
 (2) Upon the delivery of cane the occupier of a factory shall be 
liable to pay immediately the price of the cane so supplied, together 
with all other sums connected therewith. 4[***] 
 (3) Where the person liable under sub-section (2) is in default in 
making the payment of the price for a period exceeding fifteen days 
from the date of delivering, he shall also pay interest at a rate of 71/2 
per cent per annum from the said date of delivering, but the Cane 
Commissioner may, in any case, direct, with the approval of the State 
Government, that no interest shall be paid or be paid at such reduced 
rate as he may fix.  
 5[Provided that in relation to default in payment of price of cane 
purchased after the commencement of this proviso, for the figures β€˜7½’ 
the figures β€˜12’ shall be deemed substituted.]  
 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. Subs. by sec. 5 (1) of U. P. Act no. IV of 1964. 
2.  Subs. by sec. 5  ibid. 
3.  Subs. by sec. 6 ibid. 
4. Omit. by sec. 5(1) ibid. 
5. Ins. by sec. 2  of U. P. Act no. 28 of 1974. 
 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
20 
 (4) The Case Commissioner shall forward to the Collector a 
certificate under his signature specifying the amount of arrears on 
account of the price of cane plus interest, if any, due from the occupier 
and the Collector, on receipt of such certificate, shall proceed to 
recover from such occupier the amount specified therein as if it were 
an arrear of land revenue. 
 1 [Provided that notwithstanding anything to the country 
contained in this Act or in any other law for the time being in force, it 
shall be lawful that before or after the issue of recovery certificate by 
the Cane Commissioner but at any time before the completion of the 
recovery proceedings, if it is found that the owner of the company of 
the concerned defaulter factory has given any loan or done investment 
under any legal arrangement to a subsidiary company, associate 
company or other company that is engaged or not engaged in 
manufacturing of sugar, and to whom under any contract, any amount 
is to be received from any Department of the State Government or from 
any Corporation or Board or any other institution constituted under 
any statutory rules, the State Government may for the purpose of 
ensuring payment of cane price arrears of sugarcane farmers, forfeit 
the loan or investment amount or an amount equivalent to the 
outstanding cane arrear and give necessary instructions to the Cane 
Commissioner to take further action. 
 Explanation.–The words β€˜β€˜company’ or β€˜β€˜associate company’’ 
used in the proviso above shall have the meanings respectively 
assigned to them in the Companies Act, 2013 (Act no. 18 of 2013)] 
 2[(5)(a) Without prejudice to the provisions of the foregoing sub-sections, where the owner or any other person having control over the affairs of the factory or any other person competent in that  
behalf enters into an agreement with a bank under which the bank agrees to give advance to him 3[on the security of sugar or ethanol (directly produced from the sugarcane juice or B-Heavy Molasses)]  
produced or to be produced in the factory, the said owner or other person shall provide in such agreement that 4[a percentage 
determined by such authority and in such manner as may be 
prescribed] of the total amount of advance shall be set apart and be available only for repayment to cane-growers or their co-operative societies on account of the price of sugarcane purchased or to be purchased for the factory during the current crushing season from those cane-growers or from or through those societies, and interest 
thereon and, such societies’ commission in respect thereof. 
(b) Every such owner or other person as aforesaid shall send 
a copy of every such agreement to the Collector within a week from 
the date on which it is entered into.] 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1 Ins. by sec. 2 of U.P. Act no. 38 of 2021. 
2 Ins. by sec. 2 of U.P. Act no. 2 of 1972. 
3 Subs.. by sec. 3 of U.P. Act no. 23 of 2008. 
4 Subs.. and be deemed always to have been substituted by sec. 5 (b) of U.P. Act no. 7 of 1974. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
22 
Contribution 
purchase of 
cane 
1[18. (1) There shall be paid by the occupier of a factory or a 
Gur, Rab or Khandsari Sugar Manufacturing Unit a contribution for 
every one mound of cane purchased by the factory or a Gur, Rab or 
Khandsari Sugar manufacturing Unit.  
 (a) Where the purchase is made through a cane-growers’ Co-
operative Society, the contribution shall be payable to the Cane-
growers’ Society and the council in the capital/fund thereof in such 
proportion as the State Government may declare, so however that the 
share payable to the Council shall not exceed fifty percent, and  
 (b) Where the purchase is made directly from the cane-grower, 
the contribution in the fund shall be payable to the Council ;  
Provided that different rates of contribution may be prescribed 
for a factory and for a Gur, Rab or Khandsari sugar manufacturing 
Unit ;  
 (2) The contribution payable under clauses (a) and (b) of sub-
section (1) shall be at such rates as may be prescribed not exceeding 
the rates at which the contribution in the fund may be payable to the 
Council under clause (a)  
(3) The provisions relating to payment, interest and recovery 
including recovery as arrears of land revenue, applicable to price of 
cane shall mutatis mutandis apply to payment and recovery of 
contribution under sub-section (1).] 
 Provided further that the State Government may by notification 
in the official Gazette remit in whole or in part such contribution in 
respect limited purpose specified in the notification.  
19.(1) The State Government may, by notification, declare that - 
(a) cane of any variety grown in any area specified in such notification is unsuitable for use in all or any factories situated in the 
said area; 
(b) ratoon cane of any variety grown in any area specified in such notification is unsuitable for use in any or all factories situated in 
the said area; and 
(c) seed cane of any variety is unsuitable for distribution cultivators in an area as specified in such notification. 
(2) The notification under sub-section (1) shall be issued after 
December 31, and before September 1, in any calendar year. 
(3) Where any seed cane of any variety has been declared under sub-section (1) to be unsuitable for distribution to cultivators in that area, the occupier of a factory or any other person acting on his  
behalf or Cane-growers' Co-operative Society shall not distribute seed 
cane of such variety or varieties to any person to be used by cane-
growers or the members of the Cane-growers' Co-operative Societies  
in any area. 
(4) Where cane or ratoon cane of any variety has been declared under sub-section (1) to be unsuitable for use in a factory, the occupier of such factory or any other person acting on his behalf or a cane-grower or a Cane-growers' Co-operative Society shall not plant cane of any variety, or keep ratoon cane of any such variety. 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. Ins. by sec.2 of U. P. Act no. 8 of 2019. 
Power to declare varieties of cane to be unsuitable for use in factories 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
24 
CHAPTER IV 
Miscellaneous 
20. 1[***] 
221.(1) Where the occupier of 3[a factory or Gur, Rab or Khandsari Sugar Manufacturing Unit] is a firm or other association of individuals 4[(not being a company)], any one or more of the partners or members thereof may be prosecuted and punished under this Act, for any offence for which the occupier of 3[the 
factory or the Gur, Rab or Khandsari Sugar Manufacturing Unit] is 
punishable. 
Provided that the firm or association may give notice to the Collector that it has nominated one of its members to be occupier of 2[the factory or a Gur, Rab or Khandsari Sugar Manufacturing Unit] for the purpose of 5[this sub-section] and such individual shall be deemed to be the occupier for the purpose of this sub-section until further notice cancelling his nomination is received by the 
Collector or until he ceases to be a partner or member of the firm or 
association. 
(2) Where  the  occupier of  a factory  is a  company or a  Gur, Rab  or Khandsari  Sugar Manufacturing Unit is a company any one or more of the directors thereof, or, in the case of a private 
company, any one or more of the share-holders thereof may be 
prosecuted and punished under this Act for any offence for which the occupier of 2[the factory or the Gur, Rab or Khandsari Sugar Manufacturing Unit] is punishable: 
Provided that the company may give notice to the Collector 
that it has nominated a director, or in the case of a private company, a share-holder to be the occupier of 3[the factory or the Gur, Rab or  
Khandsari Sugar Manufacturing Unit] for the purposes of this sub-section and such director or share holder shall be deemed to be the occupier of 3[the factory or the Gur, Rab or Khandsari Sugar  
Manufacturing Unit] for the purposes of 5[this sub-section] until further notice cancelling  his nomination is received by the Collector 
or until he ceases to be a director or share-holder. 
22. If any person contravenes any of the provision of this Act or any rule or of Order made thereunder, he shall be 6[liable to 
a penalty which may extend to two lakh rupees and, in the case of a 
continuing contravention, with an additional penalty which may extend 
to five thousand rupees for each day during which the contravention 
continues]. 
7[22 (A) (1) An Inspector, specially empowered by the State 
Government by notification, may conduct inquiries into any 
contravention of this Act or Rules or Orders made thereunder within 
the limits of his jurisdiction. 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. Omit. by sec. 9(1) of U.P. Act no. 22 of 1956. 
2. Subs. and be deemed always to have been substitued by sec. 6(a) of U.P. Act no. 7 of 1974. 
3. Subs. by sec. 9 of U.P. Act no. 3 of 1960. 
4. Ins. and be deemed always to have been inserted. by sec. 6(b) of U.P. Act no. 7 of 1974. 
5.  Ins.by sec. 6(c) of U.P. Act no. 7 of 1974. 
6. Subs. by THE SCHEDULE of U.P. Act no. 10 of 2026. 
7. Subs. by THE SCHEDULE of U.P. Act no. 10 of 2026.. 
Determination of occupier 2[for the purposes of Section 22.] 
Inquiry into 
Contraventions 
Penalties 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
26 
 (2) Such Inspectors may exercise powers to issue notices, summon 
documents, and collect evidence necessary to ascertain compliance and 
recommend penalties under this Act. 
(3) The State Government may prescribe procedures for such 
inquiries to ensure fair and transparent enforcement.]1 
22. (B) Every officer of the Police, Revenue and Excise 
Departments shall be bound to give immediate information to an Inspector of all branches of any of the provisions of this Act which may come to his knowledge and upon request made by an Inspector, to aid him in carrying out the provisions of this Act and the rules 
made thereunder.] 
2[23. (1) (1) Any contravention of this Act or rules or orders made 
thereunder shall be subject to a penalty imposed by the Cane 
Commissioner appointed under Section 9 or an officer designated under 
Section 10, based on an inquiry conducted by an Inspector under 
Section 22A. 
(2) The Cane Commissioner or an officer designated under Section 10 
may, on application by the person liable for a penalty, compound the 
contravention by levying a composition fee not exceeding fifty percent of 
the penalty imposed under Section 22, subject to procedures prescribed 
by the State Government. 
(3) Any person aggrieved by the imposition of a penalty or 
compounding decision may appeal to the Sugar Commissioner appointed 
under Section 9 or an appellate authority designated by the State 
Government within thirty days, in such form and manner as may be 
prescribed.] 
24. 3[* * *] 
25. (1) No suit, prosecution or other legal proceeding shall lie 
against any person for anything which is in good faith done or 
intended to be done in pursuance of any order or rule made under 
this Act. 
(2) No suit or other legal proceeding shall lie against the State Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in 
pursuance of any order or rule made under this Act. 
26. The U.P. Sugar Factories Control Act, 1938 (hereinafter in 
this section and Section 27 referred to as "the said Act") is hereby 
repealed: 
Provided that without prejudice to the general application of Section 6 and 24 of the U.P. General Clauses Act, 1904, with regard to repeal and continuation of appointments, notification, 
orders, etc., under enactment repealed and re-enacted, this repeal 
shall not prejudice or affect- 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. Subs. by THE SCHEDULE of U.P. Act no. 10 of 2026.. 
2. Subs. by THE SCHEDULE of U.P. Act no. 10 of 2026. 
3. Omitt. by THE SCHEDULE of U.P. Act no. 10 of 2026. 
Duty of officers of certain departments to report offences and to assist Inspectors 
Adjudication, 
Compounding, 
and Appeal 
Special powers of Magistrates 
Protection of action taken under the Act 
Repeal and Savings 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
28 
(a) The operation of any notice served, order made or any permit licence or sanction granted before the commencement of this 
Act under the powers conferred by the said Act; 
(b) the continued validity of any cess, tax fee or other penalty assessed or imposed under the said Act prior to its repeal or the power to assess or impose any such cess, tax, fee or penalty in respect of the period prior to its repeal or anything done or permitted to be done thereunder, and such cess, tax, fee or penalty may be assessed or imposed any such thing done as if the said Act had not 
been repealed: 
(c) the continuance of a Board, or Cane Development Council constituted under the said Act and the same shall, till such Board or Council has been duly constituted under and in accordance  with  this  Act,  exercise  the powers, duties and  functions  exercisable  or dischargeable by it under this Act: or 
(d) the continued operation of any immunity, exemption or protection granted by or under the said Act: 
Provided further, that any area declared to be a reserved area or an assigned area under the said Act shall unless directed 
otherwise or superseded by anything done or any action taken under 
this Act, continue in force as if declared under this Act. 
27. The State Government may for the purpose of removing any difficulties in relation to the transition from the 
provisions of the said Act to this Act, by order published in the official 
Gazette- 
(a) direct that this Act shall during such periods as may be specified in the order take effect subject to such adaptations whether by way of modification, addition or omission as it may  
deem fit to be necessary or expedient; and 
(b) make such other temporary provision for the purpose of removing any such difficulty as it may deem fit to be necessary or 
expedient: 
Provided that no such order shall be made after twelve months from the commencement of this Act. 
 28. (1) The State Government may make rules for the purpose of carrying into effect the provisions of this Act. 
(2) Without prejudice to the generality of foregoing power, such 
rules may provide for- 
(a) The establishment and constitution of the 1[Council]; 
(b) The dissolution and reconstitution of the 1[Councils] and 
other matters incidental thereto; 
(c) The procedure to be followed in removal of members of the 
1[Council]; 
(d) The provisions for the conduct of business by the 
1[Council]. 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. The word β€˜β€˜Council’’ substituted in place of the word β€˜β€˜board and council’’ wherever occurs by U.P. Act no. 
17 of 2006. 
Transitionary provisions 
Power to make rules 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
30 
 (e)  The manner of summoning of the annual meeting of the Council under Section 6, the business to be transacted at such meetings and the procedure for the transaction of such  
business; 
(f)  The manner and form in which the fund placed at the disposal of the Council under Section 8 shall be maintained and 
the application and payment from such fund; 
(g) The directions to be issued by the State Government to the 
1[Councils] for carrying out the purposed of this Act; 
(h) The duties, powers and functions of the Sugar 
Commissioner and Cane Commissioner; 
(i) The matters relating to the appointment and other conditions of service of Inspectors to be appointed under Section 11 
and their duties, powers and functions; 
(j)  The time within which application and appeals may be presented under this Act, in cases for which  no specific provision in 
that behalf has been made herein; 
(k) The fees to be paid in respect of application and appeals 
under this Act; 
(l) 2[***] 
(m) The form of the agreement to be entered into by or under 
the provisions of this Act and the penalty to be paid for breach of 
conditions of agreement; 
(n)  3[The constitution, operation, management, supervision and audit of Councils and control 
of their staff and finances] and conditions relating to the recognition of the U.P. Cane Unions’ Federation and Cane-growers’ 
Co-operative Societies for the purposes of this Act; 
(o) The rate at which and the manner in which commission shall be paid to the Cane-growers’ Co-operative Society on supply of 
cane by them; 
(p) The correct weighment of cane, the provision of facilities for weighment and for checking weighment and of timings of 
weighments; 
(q) The provision of approach roads, parking space for carts bringing cane to factories, sheds for bullocks and cart-drivers, water 
troughs for bullocks and other connected matters; 
(r)  The reference to the Cane Commissioner of the disputes- 
i. 4[Regarding the business of the Cane-growers’ Co-operative Societies between the Society and the factory or between a 
Cane-grower and factory;] 
 
β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€”β€” 
1. The word β€˜β€˜Council’’ substituted in place of the word β€˜β€˜board and council’’ wherever occurs by U.P. Act no. 
17 of 2006. 
2. Omitted by sec. 7 of U.P. Act No. 7 of 1974. 
3. Sub. by sec. 134 (5) (1)  of U.P. Act No. 11 of 1966. 
4. Subs. by sec. 134 (5) (2) of U.P. Act No. 11 of 1966. 
[Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953]  
32 
ii.Between the Council and Cane-growers’ Co-operative 
Societies or between the Council and the factory or between the 
Council and the cane-growers regarding the payment of contribution 
to the Council by the Societies or the factories and any other dispute relating to the business of the Council; 
For decision to the Cane Commissioner or if he so directs to arbitration, the mode of appointing arbitrators, the procedure to be followed before the Cane Commissioner or the arbitrator  
and the enforcement of the decision of the Cane Commissioner or the awards of the arbitrator or arbitrators; 
(s)  The form of the statements, returns, registers and other forms required to be maintained by or under this Act and the filing of 
such returns, statement and forms; 
(t)  The forms and the manner in which applications shall be made for various purposes by or under this Act; 
(u) The duties of any officer or authority having jurisdiction under the Act and the procedure to be followed by such officer or 
authority; and 
(v) The matters which are to be or may be prescribed. 
(3)  The Rules made under this section shall come into force from a date to be appointed by the State Government. 
(4)  All such rules shall be laid before the State Legislature when it meets immediately after their enforcement and shall be subject to such omissions, alterations and additions as the Legislature may make. 
  
β€”β€”β€”β€”β€” 
 
 

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