Sharekhan update on Sugar Sector
Allahabad High Court upholds SAP of Rs140
The much-awaited decision of the Allahabad High Court on sugar-cane pricing for the sugar year 2008-09 (SY2009; October 2008-November 2009) was announced on December 8, 2008. Earlier, the Uttar Pradesh Sugar Mills Association (UPSMA) had filed a petition in the said court challenging the state advised price (SAP) of Rs140 per quintal for sugar-cane (of common variety) fixed by the Uttar Pradesh state government as “arbitrary”. The SAP for SY2009 is 12% higher than that for SY2008 (Rs125 per quintal). In its decision the court has upheld the SAP by saying that the petitioners failed to substantiate that the price fixation by the government has been arbitrary and that they could not afford to pay the said price of sugar-cane. We believe the above judgement comes as a negative for Uttar Pradesh sugar mills even as the UPSMA plans to take the matter to the Supreme Court.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment