HC allows Bajaj Group to deduct carriage cost from cane price

A division bench comprising Justice Anjani Kumar and Justice Rakesh Sharma passed the order on a petition filed by the Bajaj Hindusthan Group.

Amidst litigation and observations on the sugarcane issue since last year, the final price to be paid to the sugarcane farmers in UP is still not clear.

Interestingly, rebate on the cost of transportation of sugarcane from purchase centre to the mill, the Lucknow Bench of the HC already restrained the sugar mills from deducting transportation or any other charges from the sugarcane price.

The Allahabad HC allowed the Bajaj Group to pay sugarcane price at the rate of Statutory Minimum Price (SMP) of Rs 81 fixed by the Central government for the crushing season 2007-08, whereas, Lucknow Bench has directed the sugar mills to pay cane price at the rate of Rs 110 per quintal.

Against both orders, the Special Leave Petition preferred by the state of Uttar Pradesh is pending consideration before the Supreme Court.

Under the sugar law, the cane farmers are statutorily compelled to supply their produce to a sugar factory to which they are tied under the order of UP cane commissioner