The Hindu Business Line : Order on UP cane pricing deferred

Chennai, March 21 An order on a petition filed by Bajaj Hindusthan Sugar Ltd and Basti Sugar Mills on the State Advised Price (SAP) fixed by the Uttar Pradesh Government for the 2007-08 season to October has been deferred by the Allahabad High Court. The deferment came following the non-availability of the Bench looking into the issue.

The Bench comprising Mr Justice A. Kumar and Mr Justice Rakesh Sharma, had reserved its order on February 27.

Bajaj Hindusthan and Basti Sugar Mills have contended that the SAP fixed by the UP Government is unguided and arbitrary. The Additional Advocate General of UP, Mr Jafaf Naiyer, and the State’s chief standing counsel, Mr M. C. Chatuvedi, have contended that fixation of SAP is based on relevant materials and economical data.

Mr Ravindra Singh, representing the UP Co-operative Cane Union Federation Ltd, has that the SAP is remunerative, whereas the Statutory Minimum Price (SMP) fixed by the Centre is based on the outdated report of the Commission for Agricultural Costs and Prices and linked to the recovery. The SMP does not take in to consideration the huge earning of the sugar mills from the by-products and cogeneration such as alcohol, ethanol etc. In fact, the mills are not getting cane due to the low prices they are offering, he contended.

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