The Uttar Pradesh government will challenge the Allahabad High Court order quashing the state advised price (SAP) fixed by UP for the crushing season 2007-08 on October 31, 2007.
An HC division bench comprising Justice Anjani Kumar and Justice Rakesh Sharma had yesterday directed Bajaj and Basti sugar mills to pay cane price at the rate of statutory minimum price (SMP) fixed by the centre. The SMP for 2007-08 is lower than the SAP and would range between Rs 80 and 95 depending upon the recovery of individual sugar factory.
Passing the order, the court observed that the SAP announced by the state was arbitrary and arrived at without any formula. According to official sources, the state government will first study the HC order and challenge it in the apex court.
