Indian Sugar Mills Association (ISMA)on Friday agreed to pay cane price at the rate of Rs 125 a quintal to farmers.
In its submission before a division bench of Allahabad High Court comprising Justices Arun Tandon and Dilip Gupta, ISMA said the cane season had already started in the state and it was ready to pay at the rate of Rs 125.
On November 4, ISMA had challenged State Advised Price (SAP) terming it as arbitrary and finding fault in the method to arrive at the cane rate. Announced on October 18, 2008, SAP this year had witnessed a record hike of Rs 15 a quintal over last year.
The day-to-day hearing in the case is on since November 18 and will continue till November 24, official sources told Business Standard.
On November 18, the court had refused to pass any interim order staying SAP.
For the 2008-09 crushing season, the state government has announced SAP of Rs 137.50 a quintal of cane for rejected variety, Rs 140 for general variety (up from Rs 125 from last year) and Rs 145 for early variety.
