Sugar Act, 1978 (Act No. 9 of 1978)Sugar Industry Agreement, 2000Chapter 7 : South African Sugar Association and Disposal of Crop186. Financing Arrangements |
The following financing arrangements shall be carried out by the South African Sugar Association—
| (a) | all export sugar, local market high test molasses and export high test molasses delivered by mills in any one month, the proceeds of which are not received during the succeeding ninety days from the end of that month shall, on the expiry of the 90 days referred to in clause 181(c), be financed by the South African Sugar Association on the basis of 100% of the estimated export value thereof; |
| (b) | all export sugar, local market high test molasses and export high test molasses sold as at 31 March of each year, the proceeds of which are not received by that date, shall be financed by the South African Sugar Association on the basis of 100% of the estimated export value thereof, subject to clause 181(c)(iii); |
| (c) | the carry-over stocks of sugar and high test molasses unsold as at 31 March of each year shall be purchased by the South African Sugar Association on and as at that date in order that the total output of each year may be regarded as sold during that year and the year's recoverable value prices may be properly determined with the least possible delay on the following basis— |
| (i) | the purchase price of sugar for sale in the local market shall be the notional local market price referred to in Chapter 6 applicable on 31 March of that year; |
| (ii) | the purchase price of export sugar, including the sugar equivalent as determined by the South African Sugar Association of high test molasses produced for export and the local market, shall be based on the estimated prices thereof as determined by the South African Sugar Association on the basis of the calculation of proceeds of export sugar referred to in clause 164(c); and |
| (iii) | each miller and refiner will undertake the realisation, on behalf of the South African Sugar Association, of the local market carry-over stocks which it will have sold to the South African Sugar Association and, within such period after realisation (being when the sugar concerned is sold to such miller’s or refiner’s customers) as will be laid down by the South African Sugar Association, shall pay to the South African Sugar Association the notional local market price or prices applicable on the date or dates of realisation; and |
| (d) | any final molasses sold as at 31 March of each year, the proceeds of which are not received by that date and any stocks of final molasses unsold as at 31 March of each year, shall be financed by the South African Sugar Association on the basis of 100% of the estimated net value thereof; and |
| (e) | the cost of financing local market sugar purchased in terms of paragraph (c) and of financing final molasses in terms of paragraph (d) shall be industry obligations. |