ibnlive » India

Jan 17, 2012 at 01:56pm IST

UP: SC orders sugar mill owners to pay Rs 1000 crore to sugarcane farmers

New Delhi: In a setback to sugar mill owners on Tuesday, the Supreme Court directed private mill owners to pay approximately Rs 1000 crores to UP sugarcane farmers. The state government had fixed a particular price for sugarcane farmers a few years back, because of which a backlog of nearly one thousand crore rupees turned up.

The matter was challenged in court.

VM Singh, petitioner in the Supreme Court, said that the apex court had given the farmers their due.

"It's a good thing that farmers are getting the dues after a long time. The court has referred 7 judges, where it would be decided whether the state has the power or not to fix the prices," he said.

The entire amount would be given to the around 50 lakh farmers within three months.