Punjab Government has fixed minimum purchase price of sugarcane at the factory rate as well as at the Cane Purchase Centres, for the crushing season 2012-13 at Rs.170/- per 40 kg or Rs.425 per 100 kg (per quintal) or Rs.4250 per metric ton.
However, the Sugar Factories may deduct from the purchase price, the transportation charges incurred by them on the cane purchased at purchase centres and other locations away from the factory gate at the rate of Rs.1.25/- per quintal (100 kg) per kilometer subject to a maximum deduction for a distance of 40 km(s) from the factory gate for the crushing season 2012-13.
Punjab Government has also fixed the rate of Sugarcane (Dev) Cess at Rs.2.00 per 40 kg or Rs.5.00 per 100 kg (per quintal) or Rs.50.00 per metric ton for the crushing season 2012-13.
The incidences of the Cess amount shall be shared equally by the sugar mills and the person (grower) selling sugarcane to the mill. In case the sugarcane obtained from the sugar mills own farm, the Cess at the rate of Rs.2.00 per 40 kg or Rs.5.00 per 100 kg (per quintal) or Rs.50.00 per metric ton shall be paid by the mill.