SC notice to Centre, states on PIL seeking timely sugar payments

New Delhi, Aug. 4: The Supreme Court Wednesday sought responses from the Centre and the eleven sugarcane-producing states on the PIL filed by a former parliamentarian seeking implementation of a mechanism providing payment of dues of farmers within 14 days from supply of sugarcane to the mills.

A bench comprising Chief Justice N. V. Ramana and Jusitce Surya Kant took note of the submissions of senior advocate Anand Grover, appearing for Maharashtra's former Lok Sabha MP Raju Anna Shetti, that the sugarcane suppliers be paid their dues within 14 days of the supply across the country as envisaged by an order of the Allahabad High Court.

Issue notice. List it after three weeks, the bench said after Grover pointed out cases of states which have been defaulting in ensuring the payment to the farmers.

The senior lawyer alleged that the sugar mills have indulged in diversion of funds and are not making payment to the farmers and hence their stock of sugar should be attached for realisation of dues of agriculturists.

As per the UP Sugarcane Supply Act, it is mandatory to pay the cane growers their dues within 14 days and interest on the amount if not paid dues within the stipulated time period.

The top court issued notices to the Centre and the states of Uttar Pradesh, Maharashtra, Punjab, Uttarakhand, Haryana, Gujarat, Bihar, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu.

It also sought responses from four sugarcane purchasing firms—Bajaj Hindustan Sugar Limited, Indian Sugarmills Association, Cane Agro Energy (India) Limited and Indian Sucrose Ltd.

Shetti, in his PIL, has sought the setting up of a mechanism for payment of price of sugarcane produce to the cane farmers in order to avoid accumulation of such dues and preventing the farmers from falling in the vicious cycle when a mill is declared sick and their dues of sugarcane produce remained unpaid during the process of resolution or liquidation of sugar mill.