As a welcome step towards settling confusion over sugarcane pricing, the Supreme Court on Wednesday directed mill owners in Uttar Pradesh to pay cane growers their dues, by fixing the price as between Rs 115 and 123 depending upon the quality for the season 2006-07. The court was hearing a batch of petitions challenging the Allahabad High Court decision that had quashed the state’s fixed price. The bench, headed by Justice Arijit Pasayat, gave an interim directive, besides making it clear that dues would have to be paid within six weeks. The bench also comprising Justice P Sathasivam, while re-fixing the prices for the season 2006-2007, said the lowest quality of cane, which falls in the category of “suitable variety” would get a price of Rs 115 per quintal while the “general variety” Rs 118 per quintal and the “early variety” Rs 123 per quintal.Aggrieved by the High Court decision, dated December 19, 2007, the state Government had also appealed to the apex court along with several sugarcane farmers. The High Court had quashed the Government’s decision to fix the price of sugarcane at Rs 125-130 per quintal. Quashing the State Advised Price (SAP) of sugarcane fixed by Uttar Pradesh for crushing season 2006-07, the High Court directed revision of prices within three months.While asking mill owners to pay the dues, the apex court made it clear that if the payment had been done above the fixed price, then no recovery would be made by the mill owners, and also no interest would be paid to farmers for a delay in the payment.After hearing submissions from both sides — mill owners and the cane growers — the apex court came out with an interim arrangement and fixed the price. It subsequently posted the matter to April for further directions.Earlier on January 18, the apex court had stayed the order of the High Court and issued notices to mill owners. In its impugned order, the High Court had also suggested constitution of an expert committee, including representatives of cane unions, the Union Government and other agencies.The High Court order was passed on petitions filed by several private sugar mills, challenging fixation of SAP, alleging that price was fixed arbitrarily without any guidelines or norms.
