Centre’s sugar ‘diktat’ under SC scanner

The ISMA had requested the apex court to transfer its petition filed before the Delhi High Court and tag it along with the petition of leading sugar producer Bajaj Hindusthan,which has already challenged the validity of the amendment.

Admitting the petition,a bench comprising Justices S Sirpurkar and Cyriac Joseph issued a notice to the Centre,directing it to file a reply.

Bajaj Hindusthan,in its petition filed last month,had requested the apex court to quash the Essential Commodities (Amendment and Validation) Act and submitted that the sugar producers have to pay the farmers on the basis of the SAP fixed by state governments.

It further submitted that the Act,which said “the price of levy sugar fixed by the central government will not be subject to judicial review and cannot be challenged in any court of law” was unconstitutional.

Bajaj Hindusthan had also challenged another order issued on January 7,2010,through which the Centre had deleted a provision of the Sugarcane Control Order,1966,which stated that the state government concerned would have to pay the difference to the sugar growers if the SAP was higher than the levy price fixed by it.

The central government fixes the Standard Minimum Price (SMP) for levy sugar,which is sold through the Public Distribution System,and pays the producers accordingly.

Consenting to Bajaj Hindusthan’s plea,ISMA submitted before the apex court that the relief sought by it and Bajaj Hindusthan “are identical” and are “intricately linked and ought to be transferred and decided together”