Constitute sugarcane control board in two months: Madras HC to govt

Source: deccanchronicle.com

Chennai: The Madras high court has directed the state government to constitute within two months a Sugarcane Control Board under section 3 of the Tamil Nadu Sugarcane (Regulation of Purchase Price) Act and also frame rules, to fix the price to be payable by sugar mills for ryots for the sugarcane purchased.

Justice R.Suresh Kumar who gave the directive said once the rules are framed and pressed into service, by notifying the same and the board is constituted to transact the business, the conditions can be informed to this court by way of compliance report. Pursuant to which, further action can be proceeded, the judge added.

Disposing of a petition filed by Maniyarasu and M.Karuppudayar, which sought a direction to the Kothari Sugars & Chemicals Ltd, Tiruchirappalli district and Kothari Sugars and Chemicals Ltd, Chennai, to clear all the arrears amount of Rs 3.32lakh for the sugarcane supplied from 2013-14, 2014-15 and 2015-16, the judge however posted the petition to October 14, for filing compliance report.

In his order, the judge said standing counsel for Kothari Sugars and Chemicals Ltd submitted that in view of the law declared by the Supreme Court, whatever, the state advisory price fixed by the respective state governments over and above the statutory minimum price fixed by the central government under the sugarcane control order, cannot be operative, unless it was having a statutory backing. The relevant GOs issued in the year 2013, 2014 and 2015 by the state advising the sugar mills to pay additional amount by way of state advisory price, over and above the statutory minimum price fixed by the central government cannot be implemented. In order to have a statutory backing of such fixation by the state government, the Tamil Nadu State Assembly has passed a bill called Tamil Nadu Sugarcane (Regulation of Purchase Price) Act, which got the assent of the Governor and has been gazette on July 12, 2018, itself. Under the act, the state has to constitute a Sugarcane Control Board, which will fix the said additional price to be payable by sugar mills for the ryots for the sugarcane purchased, the standing counsel had added. Additional advocate general has submitted that though the Act has been enacted, the rules to be framed under the Act were yet to be framed and only after framing the said rules, the Sugarcane Control Board to be constituted, the judge added.

The judge said unless board was constituted and the rules were framed, the functions of the board earmarked shall not be taken up by the board effectively and once the board was constituted and rules were framed, certainly the grievance as that of the petitioner and other similarly placed sugarcane growers can very well be addressed by the said board. Once the board was constituted, then only, the ryots would be in a position to know whether the board will look into the state advisory price or fair and remunerative price prospectively i.e., after constituting the Board or after the said Act come into force or the board will look into the previous years arrears payable to the ryots, based on the SAP fixed by the said authorities earlier years. Only at that stage, as to whether the petitioners’ plea to get the additional price can be considered and to be paid, would be decided, the judge added.