A sisal factory is a premise designated for processing sisal leaf into sisal fibre. As the competent authority, AFA Fibre Crops Directorate regulates issuance of the sisal factory licence. The sisal factory licence is issued and categorized based on the source of the fibre as shown below:
1. A holder processing their own leaf.
2. A holder processing their own leaf as well as bought fibre.
The sisal factory licence is valid for a financial year, 1st July to 30th June.