HC to sugar mills: pay farmers @ Rs 110/quintal

The Allahabad High Court today directed private sugar mills in Uttar Pradesh to pay sugarcane farmers at the rate of Rs 110 per quintal.

The Lucknow bench of the court passed the order on a bunch of writ petitions filed by private sugar mills challenging the state government's directive to pay sugarcane farmers at the rate of Rs 125 per quintal.

The bench comprising Justice U K Dhaon and Justice S S Chauhan fixed the rate at Rs 110 per quintal as an interim measure, and directed private mills to start crushing cane. It posted the matter for further hearing on December 19.

Private mills, in their petitions, contended that the cost of sugar production would increase substantially, and they would incur heavy losses if they were forced to pay at the rate of Rs 125 per quintal.