Feb 3: A landmark judgement of the Lucknow bench of the Allahabad High Court will benefit around 1.5 crore cane-growers of Uttar Pradesh. The February 1 judgement has directed all 118 mills of UP to pay the cane-growers at the state advised price (SAP) of Rs 72 (for the general variety) and Rs 76 (for high variety) per quintal for the year 1996-97 for the sugarcane purchased by them from cane-growers as against the statutory minimum price (SMP) or central price of Rs 48 per quintal that was earlier directed to be paid for the year 1996-97 by the High Court.V.M. Singh, an ex-MLA from Uttar Pradesh, fought the case on behalf of the cane-growers. According to Singh, the difference between the two prices was coming to over Rs 3,500 crore (at Rs 24 per quintal).
Following a hue and cry by the cane growers, sugar mills had begun to pay the growers an interim price, in between the SAP and the SMP, and were waiting for the court's judgement on the final price.
Singh had also filed a petition that the millshad suppressed facts such as execution of the agreements in `Form C' by the mills and societies and issuance of reservation orders by the cane commissioner. In fact, according to Singh, even state-owned mills said that they had paid the money under coercion and sided with private mills who sought adjustment of the additional amount paid over the SMP.
As per the new judgement, even mills like Agauta Sugar and Chemicals, that was expecting a refund of around Rs 25 crore, will have to pay around Rs 3.37 crore to farmers as additional money, plus the interest.
Under the Allahabad High Court judgement, the sugar mills will also have to pay an interest to all the 118 mills including the 85 mills owned by the state for delay in payment over 14 days. The court has directed that interest will be calculated and paid within six weeks for the delay in payment for the year 1996-97.
Further, the court said that in case of default in making payments for six weeks for the balance of the SAP and interest, recoverycertificates will be issued against the mills and the money realised on recovery will be disbursed to the cane growers to meet their payments.
Over 1.5 crore farmers will get cheques in their hands after this judgement. Singh expects payments to the tune of Rs 400-Rs 500 crore for the sugarcane season 1996-97.
According to Singh, UP accounted for 52 per cent of cultivated area under sugar cane in 1995-96. This season (1998-99), its down to 36 per cent as cane growers have shifted to wheat, paddy and menthal. Singh also mentioned that all sugar mills are growing at quite healthy rates. ``They don't want to show profits because they would have to share them,'' he said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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