SC directs UP sugar mills to clear cane arrears

GREEN WITH ENVY: The judgement has come as a relief to sugar mills as it ends the uncertainty on cane debt.

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New Delhi: The Supreme Court has directed sugar mills in Uttar Pradesh to clear cane arrears for 2007-08 at Rs 110 per 100 kg for the current season within a month.

The interim judgement by the bench headed by Justice Arijit Pasayat has come as a big relief to sugar mills in the state as it ends the uncertainty on cane debt.

Mills will not only have to pay lower prices for cane bought this season but have also got a month to clear the arrears.

On September 1, the apex court had refused to stay the Allahabad High Court judgement that asked sugar mills to pay the state-advised price (SAP) of Rs 125 to 130 per quintal for the 2007-08 season.

The High Court while upholding the SAP of Rs 125 to 130 a quintal had modified its interim order that asked mills to pay Rs 110 a quintal. It had also asked sugar mills to pay the difference of Rs 15 a quintal by September 6.

The Supreme Court had earlier refused to accede to the request of sugar mills to extend the time by two more days for making payments till the matter was heard on Monday.