December 19, 2007 / 3:30 PM / 11 years ago

Decision on cane price in Uttar Pradesh in new year

LUCKNOW (Reuters) - A final decision on this year’s cane price in Uttar Pradesh would be taken only in the new year, following an order of the Allahabad High Court quashing the advisory price fixed by the state government.

A High Court bench on Tuesday quashed the state advisory price (SAP) of 125 rupees per 100 kg fixed by the state for the 2006/07 season and has asked the state government to reconsider its SAP, giving relief to millers saddled with excess sugar.

SAP is the minimum price fixed by the state government, which millers must pay to procure cane from the farmers. The price is higher than the statutory minimum price fixed by the central government.

The millers in Uttar Pradesh, the second largest sugar producer after Maharashtra, have not been fully compensated for the cane procured last year, which is now weighing as cane arrears.

In a separate plea filed in Lucknow bench of the High Court, cane growers in the state have sought retention of last year’s state advisory price for the current crushing season beginning Oct. 1.

The plea was to be heard on Wednesday. However, the hearing has been deferred to January 6 next year.

The Lucknow bench had, in an interim order on November 15, directed mill owners to pay cane growers at the rate of 110 rupees per 100 Kg for cane purchased during the current crushing season.

However, sugar mill owners want to revert to last year’s offered price of 85 rupees only.

Crushing in the state has been delayed by almost a month as millers refused to procure cane on the price fixed by the state government.

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