Section 19A(16) in The Sugar Development Fund Rules, 1983
(16)(a)The buffer subsidy received by the sugar factory shall be utilised for making payment of cane price including cane price arrears for the sugar season in which the buffer stock has been created and of the subsequent sugar season.(b)The payment towards cane dues shall be made within one month of receipt of the buffer subsidy:Provided that if the sugar factory does not have cane price arrears of any of the said sugar seasons as on the date of receipt of buffer stock subsidy claim or the buffer subsidy received by the sugar factory is in excess of the Cane price including cane price arrears pertaining to the said sugar seasons then buffer subsidy amount or the amount in excess of the cane price including cane price arrears may be utilised for any other purpose.
