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SC directs mill owners to clear the dues of sugarcane growers

Last Updated: Tuesday, January 17, 2012 - 12:31

Zeebiz Bureau

New Delhi: The Supreme Court on Tuesday directed the private sugar mill owners in Uttar Pradesh to clear the dues of sugarcane growers.

A bench of Supreme Court issued the directions on a batch of petitions filed by 'Kisan Sangathan', 'Cooperative Cane Development Union Limited' and others seeking directions to 'Sugar Mills Company Limited' and others to pay the prices of sugarcane supplied by them to these mills.

A bench of seven SC judges will  finally decide the right to set sugarcane prices that mills are obliged to pay farmers, SC directed.
The Apex Court also directed private sugar mill owners to pay total dues of around Rs 1,000 crores to the farmers for the year 2006-08.

Sugarcane had supplied to the mills at the rate of Rs 115, 118 and 122 per quintal as decided by the State Advisory Price (SAP).

Allahabad High Court had disbanded SAP holding that the state government was not competent to decide the procurement prices for sugarcane farmers.

The High Court had directed the state government to pay the farmers at the rate of Rs 125 per quintal.

First Published: Tuesday, January 17, 2012 - 12:31
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