SC issues notice to Centre, UP sugar mills

SC issues notice to Centre, UP sugar mills The Supreme Court has sought reply from the Centre and various sugar mills on a petition filed by the Uttar Pradesh government challenging the Allahabad High Court order that allegedly had the effect of discriminating between the cane growers in the state. A bench headed by Justice Arijit Pasayat while refusing to stay the High Court's interim order issued notice to the Ministry of Food and Civil Supplies and Basti Sugar Mills Company, Bajaj Hindustan, Bajaj Hindusthan Sugar & Industries. The bench posted the matter for hearing on 12th May. Challenging the High Court's interim order that directed payment of sugarcane price for 2007-08 at the rate of Statutory Minimum Price (SMP) of Rs 81.18 per quintal fixed by the Central government, the UP government said the order was contrary to its state advised price (SAP) of Rs 125 per quintal fixed under the UP Sugarcane (Regulation of Supply and Purchase) Act, 1953. According to the petitioner, the High Court had also directed the respondents to furnish bank guarantee for differential amount between SAP and SMP. It submitted that the impugned order runs contrary to another High Court order passed on 15th November, 2007 that asked sugar factories to pay sugarcane price at the rate of Rs 110 per quintal for the same season. "The impugned interim order had the effect of certain mills in the state paying the sugarcane price at the rate of Rs 110 per quintal and certain others mills paying at the rate of SMP (Rs 81.18 per quintal linked to the basic recovery of 9 percent) thereby discriminating the cane growers on the basis of the mill to which the sugarcane is to be supplied," the petition stated.

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