Ina grain chit for the purpose of security under Section 20, the grain shall be valued, by the Registrar as follows:
(a) The total quantity of grain due from all subscribers at one installment of the chits shall be ascertained;
(b) The market value for the time being of the total quantity referred to in clause (a) shall then be calculated;
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(c) In assessing the market value, the Registrar shall adopt the current market price at the nearest taluk town as ascertained from the Tahsildar having jurisdiction;
(d) One and a quarter times the market value mentioned in clause (b) shall be taken to be the chit amount for the purpose of furnishing security by the foreman under sub-section 91) of Section 20.