The Supreme Court has sought a reply from the Centre and 11 state governments on a petition seeking a mechanism to ensure timely payment to sugarcane farmers for the produce sold to sugar mills.

CJI Justice NV Ramana-led bench will hear the case after 3 weeks, in which notices have been issued to the Centre and 11 top sugarcane producing states of India, namely: Uttar Pradesh, Maharashtra, Haryana, Uttarakhand, Punjab, Gujarat, Bihar, Telangana, Karnataka, Andhra Pradesh and Tamil Nadu.

Notices have also been issued to Bajaj Hindustan Sugar Limited, Indian Sugarmills Association, Cane Agro Energy (India) Limited and Indian Sucrose Limited on the petition which wants to attach sugar stocks lying with mills to ensure that their sale proceeds are distributed among sugarcane farmers.

The petition filed by 6 Maharashtra-based farmers and a former Member of Parliament (MP) Raju Anna Shetti, has cited pending dues of over Rs. 18,000 crores which are yet to be paid to sugarcane farmers by sugar mills, claiming that farmers get a raw deal when sugar mills are declared sick.

Terming non-payment of pending dues as violative of Sugar (Control) Order, 1966 which mandates payment to sugarcane suppliers within 14 days from the date of supply, the petitioners have also cited the Essential Commodities Act 1955 which calls for payment of “fair and remunerative price” to sugarcane producers as per the right to life under the Indian Constitution.

While the top court observed that a similar case was dealt by the Allahabad High Court in 2014, the petitioners sought an apex court order to ensure the welfare of farmers across India.

The petition has claimed that as on 21st August 2020, 119 sugar mills had paid just 70% of their 2019-2020 sugarcane dues to farmers, with pending dues of around Rs. 11,000 crores. The petition has contended that the Yadu group has paid only 15% of sugarcane dues and owes Rs. 111 crores to farmers; Simbhaoli group has paid 24% and owes Rs. 590 crores and the Modi group has paid 27% of dues with a payment of Rs. 568 crores still pending.