• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai, Dec. 8 The Allahabad High Court on Monday dismissed a writ petition that challenged the state advised price (SAP) fixed by the Uttar Pradesh Government for purchase of sugarcane from the growers during the current crop year that began in October.

A division bench comprising Mr Justice Arun Tandon and Mr Justice Dilip Gupta said it was the prerogative of the State Government to fix SAP.

It also said the Western UP Mills Association, which filed the writ, had failed to prove that the State had fixed the price “arbitrarily”.

On October 18, the Uttar Pradesh Government raised SAP by Rs 15 a quintal from last season’s price. SAP for common variety sugarcane was fixed at Rs 140 a quintal, while for the early variety sugarcane it was Rs 145 and for rejected variety, it was Rs 137.50 a quintal.

The price was fixed after the Government held consultations with the industry, cooperatives and growers. This was seen as a way to overcome the issue of mills challenging the price fixation in the court. SAP fixed by Uttar Pradesh during 2006-07 and 2007-08 has run into problems and the cases are currently pending in the Supreme Court.

During the hearing, private sugar mills offered to pay Rs 125 a quintal. The offer was the same as fixed by the State last season. It was made response to a query from the bench, which asked them how much they were ready to pay to the growers.

The SAP issue also has seen the mills split ranks with at least a couple of mills beginning crushing on the understanding that the growers would be paid SAP if the High Court rules in favour of the State. If the case goes to the apex court, then growers are assured of Rs 125/quintal pending the final outcome.

More Stories on : Sugar | Courts/Legal Issues

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line