New Delhi: The Supreme Court’s order on Thursday requiring sugar mills in Uttar Pradesh to pay growers of Rs 110 per quintal “within three weeks” for cane purchased during the 2007-08 season (October-September) would entail their making disbursements of over Rs 2,300 crore.
During the recent season, UP mills had procured cane from farmers, against which Rs 8,164.86 crore was payable at the rate of Rs 110 per quintal fixed by the Lucknow Bench of the Allahabad High Court on November 15, 2007.
However, as on May 12, the mills had paid only Rs 5,842.49 crore. That leaves arrears of Rs 2,322.37 crore, which will now have to be discharged within the next three weeks. Of the Rs 2,322.37 crore, private mills owe the bulk of Rs 1,681.95 crore, with cooperatives (Rs 389.35 crore) and State Government-owned mills (Rs 251.07) crore) accounting for the rest.
Separate orders
Some of the sugar companies, including Bajaj Hindusthan, had obtained separate orders from the Allahabad High Court (not the Lucknow Bench) requiring them to pay only the Centre’s statutory minimum price (SMP) of Rs 81.18 per quintal, linked to a base sugar recovery of nine per cent. This was below the flat Rs 110 per quintal rate fixed by the Lucknow Bench and also the State Advised Price (SAP) of Rs 125 per quintal that was earlier decided by the UP Government.
But the Supreme Court has now, in its latest order, directed the mills to pay the Rs 110 per quintal interim rate that was fixed by the Lucknow Bench. The apex court will review this order in July (when it reopens after the summer recess), by which time the Allahabad High Court is also expected to pronounce its final judgment on sugarcane pricing and the fixing of SAP by the State Government. The High Court, on May 9, reserved its judgment.
Dues by cos
The Supreme Court’s interim order, passed by a Bench headed by Justice Arijit Pasayat, would particularly affect Bajaj Hindusthan and the U.K. Modi Group, which have arrears to the tune of 35 per cent and 66 per cent respectively of their total payable amount.
Others with dues in excess of 20 per cent include Mawana Sugars (29 per cent), the K.K. Birla Group and DCM Shriram Industries (24 per cent each), Triveni Engineering and Dhampur Sugar (22 per cent each), Simbhaoli Sugars (21 per cent) and Uttam Sugar (20 per cent).
On the other hand, companies such as DCM Shriram Consolidated (four mills at Ajbapur, Rupapur, Hariyawan and Loni), Sir Shadi Lal Enterprises (two mills at Shamli and Unn) and Parle Biscuits (one unit at Parsendi) have discharged 95 per cent or more of their cane payments. Balrampur Chini’s arrears, too, are relatively low at 14 per cent.
During the recent season, UP mills had procured cane from farmers, against which Rs 8,164.86 crore was payable at the rate of Rs 110 per quintal fixed by the Lucknow Bench of the Allahabad High Court on November 15, 2007.
However, as on May 12, the mills had paid only Rs 5,842.49 crore. That leaves arrears of Rs 2,322.37 crore, which will now have to be discharged within the next three weeks. Of the Rs 2,322.37 crore, private mills owe the bulk of Rs 1,681.95 crore, with cooperatives (Rs 389.35 crore) and State Government-owned mills (Rs 251.07) crore) accounting for the rest.
Separate orders
Some of the sugar companies, including Bajaj Hindusthan, had obtained separate orders from the Allahabad High Court (not the Lucknow Bench) requiring them to pay only the Centre’s statutory minimum price (SMP) of Rs 81.18 per quintal, linked to a base sugar recovery of nine per cent. This was below the flat Rs 110 per quintal rate fixed by the Lucknow Bench and also the State Advised Price (SAP) of Rs 125 per quintal that was earlier decided by the UP Government.
But the Supreme Court has now, in its latest order, directed the mills to pay the Rs 110 per quintal interim rate that was fixed by the Lucknow Bench. The apex court will review this order in July (when it reopens after the summer recess), by which time the Allahabad High Court is also expected to pronounce its final judgment on sugarcane pricing and the fixing of SAP by the State Government. The High Court, on May 9, reserved its judgment.
Dues by cos
The Supreme Court’s interim order, passed by a Bench headed by Justice Arijit Pasayat, would particularly affect Bajaj Hindusthan and the U.K. Modi Group, which have arrears to the tune of 35 per cent and 66 per cent respectively of their total payable amount.
Others with dues in excess of 20 per cent include Mawana Sugars (29 per cent), the K.K. Birla Group and DCM Shriram Industries (24 per cent each), Triveni Engineering and Dhampur Sugar (22 per cent each), Simbhaoli Sugars (21 per cent) and Uttam Sugar (20 per cent).
On the other hand, companies such as DCM Shriram Consolidated (four mills at Ajbapur, Rupapur, Hariyawan and Loni), Sir Shadi Lal Enterprises (two mills at Shamli and Unn) and Parle Biscuits (one unit at Parsendi) have discharged 95 per cent or more of their cane payments. Balrampur Chini’s arrears, too, are relatively low at 14 per cent.
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