Business Daily from THE HINDU group of publications
Friday, Jan 18, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Jan 18, 2008 ePaper | Mobile/PDA Version |
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Agri-Biz & Commodities
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Sugar Industry & Economy - Courts/Legal Issues States - Other States Allahabad HC exempts UP sugar mills from paying interim price Our Bureau New Delhi, Jan 17 In a further reprieve to sugar mills in Uttar Pradesh, the Allahabad High Court has exempted them from paying the Rs 110 per quintal interim price fixed by the Lucknow Bench of the same court for cane bought during the current 2007-08 season (October-September). A two-member Lucknow Bench of the court had, on November 15, directed the mills to pay the interim rate of Rs 110 per quintal to growers. This was in response to a bunch of writ petitions filed by private mills against the State advised price of Rs 125-130 per quintal declared by the UP Government for 2007-08 — the same level that was fixed for the 2006-07 season as well. Following the November 15 order, the very next day, the UP Government issued a directive to all mills in the State to pay farmers the Rs 110 per quintal interim price. With many mills not paying even this rate, the State Government, only last week, issued recovery certificates to 64-odd factories. However, on Thursday, a two-member Bench of the Allahabad High Court, comprising Mr Justice Anjani Kumar and Mr Justice Rakesh Sharma, exempted factories from paying the Rs 110 per quintal price, while responding to a petition from Basti Sugar Mill under Bajaj Hindusthan Ltd. The mills would, therefore now be required to pay only the statutory minimum price of Rs 85-90 per quintal fixed by the Centre for the 2007-08 season. The decision to dispense with the Rs 110 interim price was apparently based on the logic that another Bench of the same Court, through an order dated December 19, had quashed the SAP of Rs 125-130 per quintal for 2006-07 as arbitrary and unreasonable.
Against this background, there was no need for an interim rate of Rs 110, which was different from the Centre’s SMP of Rs 85-90 per quintal. Meanwhile, the Supreme Court is scheduled to hear, on Friday, appeals against the Allahabad High Court’s rulings filed by the State Government and the farmer leader, Mr V.M. Singh, on behalf of the Kisan Mazdoor Sangathan. The UP Government has challenged the order quashing the SAP for 2006-07, while Mr Singh has questioned the validity of the Court’s fixing an interim price lower than the SAP for 2007-08. Allahabad HC lets sugar mills pay Rs 110/qtl UP mills owe sugarcane growers Rs 1,460 crore HC asks sugar mills to clear cane arrears in 3 weeks More Stories on : Sugar | Courts/Legal Issues | Other States
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