The Hindu : Tamil Nadu / Chennai News : Chief Minister defends SAP for sugar cane

Online edition of India's National Newspaper
Tuesday, Sep 27, 2005

Tamil Nadu

Tamil Nadu - Chennai

Chief Minister defends SAP for sugar cane

Special Correspondent

Ministerial-level meeting on October 6

CHENNAI: Making it clear that the State Government had decided to follow a new policy of State Advised Price (SAP) for sugar cane, taking note of the decision of the Supreme Court, Chief Minister Jayalalithaa on Monday told the Assembly that a Ministerial-level meeting would be held with representatives of private sugar mills on October 6 to evolve a procedure for implementation of the SAP and disbursal of dues to cane growers in time.

Intervening in the debate on the First Supplementary Statement of Expenditure for 2005-2006, she criticised the Opposition Dravida Munnetra Kazhagam for "raising apprehensions" about the feasibility of ensuring the implementation of the SAP by the private sugar mills.

Though the Centre had announced a statutory minimum price of Rs.795 a tonne for the 2005-2006 season, the State Government had decided that a minimum sugar cane price of Rs.1,014 a tonne should be paid to the cane growers. In addition, an incentive of Rs.8.80 a tonne for every increase of 0.1 per cent over and above the average recovery of 9 per cent would be paid, she said.

According to the Supreme Court order of May 5, 2004, though the SAP has no sanction of law, the action of the State Government in notifying the SAP and advising the sugar factories to comply with the same is not per se illegal. The SAP can serve as a framework within which an agreement on the price can be reached between the cane growers and the sugar producers. Therefore, the orders issued by the State Government/Cane Commissioner communicating the fixation of SAP need not be set aside.

"No legal taboo"

"There is no legal taboo against the State Government machinery playing a role in evolving an agreement between the cane growers and the sugar producers as to the price, without adopting any coercive methods," the order said.

The apex court in its order also said, "Once the occupier of sugar factory reaches an agreement with the cane grower — may be on the persuasion of the State authorities — to pay the price equivalent to SAP either by executing a formal agreement in this behalf or otherwise, the occupier of the factory is bound to pay such price and in case of default it can be recovered by the State authorities by coercive process laid down in the statute," the Chief Minister pointed out. She urged the Opposition to carefully go through the order and understand it.

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