The Lucknow bench of the Allahabad high court has slammed the state government for going slow on the recovery of cane dues from the sugar industry in the state.
With more than R2,653 crore pending as dues, the sugar industry has been pleading for more time to settle the amount keeping in view the fact that banks have placed UP's sugar sector in the negative list and the domestic prices are at an all-time low of R31 per kg.
The bench comprising justice Imtiaz Murtaza and justice Devendra Upadhyay said the government was in contempt of the court's previous orders to ensure all payments are made to the farmers by August 23 and asked it to file an affidavit to show compliance of its last order.
Taking a dig at the state government, the bench said it seems that the state's machinery has failed and asked it to give it in writing that it did not have the wherewithal to get the payments made.
Fixing the next date for the hearing on August 29, the court asked the government to make up its mind to either arrest the offending mill owners or get the concerned department officials arrested.
Tuesday's hearing came up on a PIL filed by VM Singh of Rashtriya Kisan Mazdoor Sangathan.
According to figures made available by the cane commissioner's office, the total dues are to the tune of R2,653.48 crore. Out of this, private sugar companies owe the farmers R2,567.87 crore while the state sector owes R85.61 crore.
Taking note of the fact that payments must be paid within 14 days of buying cane from the farmers, the court said that it was almost 4 months since the last sugar season ended.
“When will your 14 days get over?” the bench asked, directing the state to ensure farmers get the interest on non-payment by the millers.