HC denies cane price relief to UP sugar mills

The Allahabad High Court today refused to pass any interim order staying the cane State Advised Price (SAP), which has been challenged by the Indian Sugar Mills Association (ISMA).

On November 4, the ISMA had challenged SAP terming the rate as arbitrary on the part of the state government. Announced on October 18, this year, the SAP this year had witnessed a record hike of Rs 15 per quintal over last year.

The petition alleged that the SAP was arrived at arbitrarily and did not consider the “losses” incurred by the sugar industry in the last two years. The sugar industry had expressed its willingness to pay around Rs 112 per quintal.

 

Hearing the petition, a Division Bench comprising Justice Arun Tandon and Justice Dilip Gupta said the court would pass the final judgement after hearing the arguments.

The state government and the sugar federation filed counter affidavits in the case, while the petitioner also filed a rejoinder.

Meanwhile, Kisan Mazdoor Sangh leader VN Singh filed an application to include him as a party in the case. Hearing in the case will continue tomorrow.

According to sources, the federation is likely to apprise the court about the acceptance of SAP by some sugar mills in the state.

For the 2008-09 crushing season, the state government has announced SAP of Rs 137.50 per quintal of cane for rejected variety, Rs 140 for general variety (up from Rs 125 from last year) and Rs 145 for early variety.

ISMA maintains that the domestic sugar sector was passing through a bad phase and the companies do not have the capacity to pay at this level.