MOLASSES SALE POLICY
At present, molasses is being sold by the Finance Committee of the Sugarfed, which consists of following:-
- Chairman, Sugarfed, Punjab.
- Registrar, Cooperative Societies, Punjab or his nominee.
- Managing Director, Sugarfed, Punjab.
- Two elected Directors of BODs, Sugarfed, Punjab.
Now sale of molasses will be done at mills level consisting of the following members:-
- Elected Director nominated by BOD of Mills by rotation for one year.
- Chief Accounts Officer.
- Chief chemist.
- Sugar Sale Incharge.
- Presence of at least three members of the committee will be essential for conducting sale of molasses. However presence of Elected Director and General Manager will be must and General Manager will ensure compliance of Molasses Sale Policy in letter and spirit.
- Sugar Mills where elected BOD is not in place, a nominee of Managing Director, Sugarfed Punjab not below the rank of General Manager will be member of Molasses Sale Committee.
All traders will be eligible to participate in tenders provided they become nominal members of the concerned sugar mills in accordance with clause No.7 (vii) and 8(c) of Bye-laws of sugar mills. The defaulter traders who have not lifted the purchased quantity of molasses from earlier sales will not be entertained unless loss has been paid by them or recovered from them.
Molasses Sale Committee will carry out following functions:-
- Decide the quantity of molasses to be sold in tender, keeping in view financial requirements of the mills, market trends, future forecast, carrying cost of molasses and interest on working capital etc.
- Decide the frequency of tendering, keeping in view the molasses stocks/demand/storage capacity in the mill for molasses. Entire molasses stock of a crushing season should be sold before the start of next crushing season.
- Molasses shall be sold on ‘as is where is’ basis and tenderer is free to inspect the quality of molasses. No controversy regarding quality of molasses shall be raised later on.
- Sale letter will be issued within 24 hours of finalization of tender.
As per existing terms & conditions, each tenderer is required to deposit Rs.25/- per quintal of molasses as Earnest Money alongwith the tender, which is enhanced to Rs.50/- per quintal.
Tenderer will deposit atleast 50% of the total amount within 30 days and 100% payment within 45 days from the sale letter or earlier if lifted before 45 days. Extension beyond 45 days i.e. 28 days with penalty @ Rs.2.00 per quintal per week shall be entertained subject to the deposit of total sale proceeds.
In the existing system, Finance Committee of Sugarfed has authorized Managing Director, Sugarfed, Punjab to sell molasses at the last rates finalized by the Committee, to Government Bodies/Cooperative Department such as Milkfed, Markfed/ PSU/Corporations and Boards etc. on receipt of their request. In the revised policy, similar authority will be exercised by the concerned General Managers of the mills on authorization by the Board of Directors/Supervisory/Administrative Committee of the concerned mill.
Lifting will be allowed in 45 days plus 28 days with penalty @ Rs.2.00 per qtl. per week. But lifting will be allowed on all the days, which is presently all ‘working days only’. No extension will be allowed beyond 73 days (45+28 days). Un-lifted quantity will be retendered/sold at the risk & cost of bidder at the earliest but not later than two months.
E-tendering system/ E-auction will continue to be followed for sale of molasses and minimum three members of the committee should have authorization of opening of e-tender.
Loading of molasses in Tankers will be the responsibility of mills. Arrangement of transportation shall be made by the purchaser. Hence transportation and all other charges upto destination will be borne by the purchasers.
If highest bidder does not bid for entire quantity of tender, the sale committee may offer him to increase the quantity on deposit of additional EMD on the same day.
In case of rejection of highest bid by sale committee, retender will be done expeditiously keeping in view the market conditions.
Earnest money deposit shall be adjusted in the last consignment and no interest will be paid on this amount.
The tenderers are required to quote the rates of molasses excluding the taxes. Excise Duty and other taxes would be payable by the tenderers as per rules. The purchaser shall incur all transport costs and incidental charges.
Utilization of molasses and all such transactions in this regard would be subject to the Acts and Rules issued by the Department of Excise & Taxation, Punjab and also would be governed by the provisions of the East Punjab Molasses Control Act, 1948 as amended from time to time and all provisions of other laws in force.
It will be purchaser’s responsibility to get permission from the Excise & Taxation Department for lifting of molasses. No extension/delay on this account shall be considered by the mill.
The Committee reserves the right to accept or reject one or all tenders without assigning any reason.
If any dispute arises between tenderer and mill, such a dispute is to be referred for arbitration under Punjab State Coop. Act. 1961.