In a encouraging development for the cash starved sugar sector, Allahabad High Court directed Uttar Pradesh government to ensure that sugarcane growers in the state were paid 75% of their dues by July 15 and that legal action was taken against directors of those sugar mills on no-compliance of its order.
The order was passed by a division bench comprising Chief Justice D Y Chandrachud and Justice Manoj Gupta on a PIL filed by Rasthriya Kisaan Mazdoor Sangathan drawing the court's attention to the plight of sugarcane growers in UP.
Further, the bench while fixing upon July 28 as the date of hearing in the matter, decided ruled that the 75% of dues payable to farmers be paid to them in three equal installments of 25% each. While, 25% of dues should be paid by June 15, another 25% should be by June 30 and another 25% by July 15.
Lastly, court noted that the dues payable to farmers were to the tune of Rs 985.34 crore for cooperative sugar mills, Rs 23.91 crore for cooperative sugar corporations (nigams) and a staggering Rs 8682.91 crore for private sugar mills.