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Moneycontrol India :: News :: SC asks sugar mills to pay Rs 110/100 kg cane in FY08 :: :: Business :: Supreme Court,Uttar Pradesh Sugar Mills Association,Niraj Shah
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SC asks sugar mills to pay Rs 110/100 kg cane in FY08
2008-05-16 14:16:19 Source : Markets Midday/CNBC-TV18
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By Niraj Shah/CNBC-TV18

 

The Supreme Court has asked the Uttar Pradesh Sugar Mills Association to clear FY08 arrears in four weeks, reports CNBC-TV18, quoting Newswire18. The court has asked sugar mills to pay Rs 110 per 100 kg cane in 2007-08.

 

The pricing is not really a problem. The last judgment that had come out said that UP sugar mills, as an interim measure, will have to pay farmers at Rs 110 per quintal. So, the pricing is not really an issue out here as all mills knew they have to pay at the rate of Rs 110 per quintal.

 

However, the issue for sugar manufacturers could be the duration that they have been given at this point of time. Four-weeks or a months time is really not that long a timeframe considering that the industry has been reeling under past losses, never mind the kind of profits that they have made in the current quarter.

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