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Cane price: Rs 110 per quintal

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Express News Service & PTI

Posted: Jan 09, 2008 at 0000 hrs IST

Lucknow, January 8 The Lucknow Bench of the Allahabad High Court today directed private sugar mills to pay Rs 110 per quintal for sugarcane.

The court also directed the cane commissioner to file a compliance report on January 11 through an affidavit, saying that mills were paying farmers according to the court’s direction.

The High Court Bench comprising of Justices Pradeep Kant and S N Shukla further directed private sugar mills to ensure that the cane price is credited in the saving banks account of the farmers by January 10.

The cane commissioner also submitted a list of 17 private mills, which were not complying with court orders regarding state advisory price (SAP).

For the year 2007-08, the state government had fixed the SAP at Rs 125 per quintal for the common variety and Rs 130 per quintal for the early variety of sugarcane. Uttar Pradesh Sugar Mills’ Association and few other private sugar mills had challenged the SAP in the Lucknow bench of the Allahabad High Court.

The bench, in an interim order on November 15 2007, hxad directed private sugar mills to pay farmers at the rate of Rs 110 per quintal for sugarcane in the current season.

The sugar mills had refused to comply with the order saying it was not viable since sugar price in open market was far too low.

Resuming hearing in the case, the High Court on January 7, had directed the cane commissioner to furnish a list of private sugar mills, which were not complying with the court order.

Meanwhile, an FIR under Section 3/7 of the Essential Commodities Act and Section 420, 421 and 418 was lodged against the management of the private sugar mills at Nawabganj in Bareilly district.

On behalf of Private Sugar Mills Association, senior Supreme Court lawyer A N Trivedi argued saying that fixing of sugar cane price by the state government cannot be arbitrary and it must consider various factors before fixing the average price for a crushing season.

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