Taking their fight against the state government a step ahead, the UP sugar industry in the state has sought legal help to strengthen its case against the administration’s method of fixing cane area reservation before fixing cane price.
The industry has filed a writ petition in the Allahabad High Court, seeking a direction to the state government to declare cane price for the 2013-14 season before asking sugar factories to submit their cane reservation proposals. It has also sought that no coercive action be taken against the mills for not furnishing the reservation proposals. The hearing on the case will be taken up by the court on Tuesday.
The petition also seeks a direction to the state government that, while determining cane price for the season 2013-14, relevant factors, such as cane price- paying capacity of the factories, returns from alternative crops, recovery of sugar from cane and realisation from sale of by-products, be considered.
Seeking that a direction in the nature of mandamus be issued to the state government (not to proceed with the process of reservation meetings until cane price is determined and declared), the writ says this is necessary as cane price is an important element in purchasing sugarcane and since the demand for cane area is directly proportional to the quantity of cane that a sugar mill will have to purchase. “Thus, the financial capacity of a sugar factory becomes an important factor while making a proposal for reservation of the cane area,” the writ states.
The writ says it is one’s right to know one’s liability before committing oneself to the payment of such a liability. “The decision to undertake a liability has to be an informed decision and there cannot be any element of surprise towards payment of statutory liability or taking of such liability which cannot be discharged at a later stage... And the action of the government in not declaring the price prior to demanding reservation proposal is
unjust, unfair, not transparent and illegal,” it went on to state.
It may be mentioned that the industry has been crying itself hoarse over the issue of fixing cane price before asking the factories about their requirements.
For the first time, the industry has turned so defiant — it has refused to give in to the state government's pressure and sought legal help.
Speaking to FE on the condition of anonymity, a miller said that cane in UP has always been a political tool and a higher cane price has been a bait for luring the over 4-million farming community. “But this has cost the industry very dear and has gone a long way to make the sugar industry in UP unviable. We have been pushed to the wall now and there is no option but to turn defiant and seek the courts’ help," he said.