Sugar mills in Uttar Pradesh will have to pay farmers an additional Rs 1,480 crore following the Supreme Court’s refusal to stay the Allahabad High Court’s judgement that upheld the state-advised price (SAP) of cane at Rs 125-130 per quintal.
The additional sugarcane payment to farmers will have to be made by September 7, as the apex court bench headed by Justice Arijit Pasayat did not give any extension of time to millers.
Earlier, East UP Sugar Mills Association and Mawana Sugars had moved the Supreme Court challenging the Allahabad High Court’s judgement that upheld the SAP of sugrcane fixed by the state for the 2007-08 season.
The Lucknow Bench of the Allahabad Court had asked the sugar mills to pay the difference of Rs 15 a quintal by September 7. The HC, while upholding the SAP, had modified its interim order that asked mills to pay Rs 110 a quintal.
According to sources, the UP sugar mills will have to pay an estimated Rs 1,480 crore to the farmers by September 7, after the apex court’s refusal to extend the time.
The Uttar Pradesh government had fixed Rs 125 a quintal as SAP for the common variety sugarcane and Rs 130 for the early variety canes for the 2007-08 season.
