August 7, 2012 9:25 AM

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Clear farmers dues within 15 days :Allahabad HC to UP sugar mills

Allahabad High Court has directed the sugar mills in Uttar Pradesh to clear all dues of sugarcane farmers within 15 days along with interest. The Lucknow Bench of the court also ordered the government to stop recovery of agriculture loans from the farmers till the payment of arrears with interest. The order by a bench comprising Justices Umanath Singh and Virendra Kumar Dixit came yesterday on a petition filed by Bharatiya Kisan Mazdoor Sangathan. Our correspondent reports that about 2000 crore rupees are still pending on sugar mills for payment to the sugar cane farmers for last crushing season. The Supreme Court had fixed July 7 as dead line for the payments. The biggest defaulters are the private sugar mills, who have to pay around 1,920 crore rupees as cane dues for the said period. The state government had released about 400 crore rupees recently for the clearance of the dues amounting to 566 crore rupees on the UP Cooperative Sugar Federation. It may be recalled that the state advised price of cane fixed by the state government in 2011-12 was challenged by the private mill owners in the Courts but both High court and the Supreme Court had upheld the government's decision.

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