Karnataka HC declines to stay higher price for sugarcane growers in setback to mills
South India Sugar Mills Association (Karnataka) and others approached the court alleging that the industry was in bad shape and they were unable to pay FRP on time. The association said the government did not comply with any law in exercising its power to fix the price.
However, Justice Suraj Govindraj refused to grant interim relief without first hearing the respondents (government, farmers), observing that sugar industries make money by producing sugar and ethanol and diverting ethanol to other industries but are reluctant to share some of it with sugarcane growers.
The judge sent the case to the hearing on December 17.
The association prayed for quashing of the government notification on the grounds that the State has no authority to announce prices higher than the price fixed by the Centre.
Chief Minister Siddaramaiah last month announced that sugar mills and the government will pay Rs 50 per tonne of sugarcane to farmers in addition to the existing purchase price.
There are 81 sugar mills in Karnataka. One of these is government-run and the other is 11 organizations in the cooperative sector. The rest is privately owned.
