State told to specify stand on sugarcane SAP payments

A division bench comprising Justice Vineet Kothari and Justice Anita Sumanth before whom the plea moved by sugarcane farmers seeking to pay the pending SAP amount, said, “In the counter filed by the state as well as Nadippisai Pulavar KR Ramaswamy Cooperative Sugar Mills, no clear stand has been taken by them as to whether the government in fact undertakes or is under an obligation to pay off SAP to the sugarcane farmers or not.”

Also, the bench recorded the contention of Z Abraham, deputy secretary, Agriculture Department, that in general, though it is a contractual obligation between the mills and the growers, yet the government sanctions the ‘ways and means advance’ to co-operative and private sugar mills for settling the cane price arrears from time to time so that the farmers get the payment towards the cane supplied to the mills, on time. 

The bench said, “In the absence of the clear stand taken by the state, this court is of prima facie opinion that the state deserves to be directed to take a specific stand in the matter.”

Further, citing a Supreme Court direction that the SAP fixed by the state has only recommendation value, said, “Therefore, the state is directed to file additional affidavit stating its clear stand before this court as to whether the government is bound and agreeable to pay the balance amount of SAP to the sugarcane grower or not and if so, within what time frame it would be paid.”

“If the state denies its liability to pay the same, the reasons for the same may also be assigned in the said affidavit to be filed before this court,” the bench added and posted the case for further hearing to January 9.

As per the case, the SAP was fixed by the government under GO dated January 14, 2015 for 2014-15. While a part of the dues was paid by the state, the PIL was moved by one of the sugarcane growers for the recovery of the balance as fixed under the said GO.