HC quashes SAP, orders payment to cane farmers at SMP

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Allahabad, Aug 18 (UNI) Allahabad High Court today quashed the State Advisory Price (SAP) in the matter of sugarcane for the year 2007-08 and directed the sugar mills to pay the cane growers on the basis of the Statutory Minimum Price (SMP) as fixed by the Central government.

A division bench consisting of Justice A Kumar and Justice Rakesh Sharma passed this order on a writ petition filed by Basti Sugar Mills and others.

The Court has allowed the writ petition and quashed the SAP.

The petitioners had moved the Court, challenging the SAP fixed by state government for year 2007-08 at Rs 125 per quintal.

The petition was filed on the ground that same was arbitrary and unreasonable and that the SMP fixed by the Central government at Rs 86 per quintal was a reasonable price.

The Judgement on the aforesaid writ petition was reserved by the bench on May 9, 2008.


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