Only Centre has exclusive powers to fix minimum price for sugarcane, holds SC

The Supreme Court held on Wednesday that only the Centre has the exclusive power to fix the minimum price of sugarcane and the state government can only fix the remunerative or advised price which has to be higher than the one fixed by the Union government.

The top court held that in a case where the advised price fixed by the state is lower than the minimum price fixed by the Centre, the provisions of the central enactments will prevail.

It said that there cannot be any inconsistency or conflict between the prices fixed by the Centre and the state as the advised price has to be higher than the minimum price fixed by the Union government.

A five-judge Constitution bench headed by Justice Arun Mishra upheld the view taken by the apex court in its 2004 verdict in U.P. Cooperative Cane Unions Federations and said that there is no need to refer the issue to a larger seven judge bench.

The bench, also comprising Justices Indira Banerjee, Vineet Saran, M R Shah and Aniruddha Bose, said in its finding, by virtue of Entries 33 and 34 List III
It said that provisions of U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 is not repugnant to the Essential Commodities Act, 1955 as the price which is fixed by the Central Government is the minimum price and the price which is fixed by the State Government is the advised price which is always higher than the minimum price fixed by the Central Government and therefore, there is no conflict