The Allahabad High Court has rejected the writ petition filed by Uttar Pradesh Sugar Millers Association regarding the fixation of state advised price (SAP) by UP government. The bench of Mr. Justice Arun Tandon and Mr. Justice Dilip Gupta said that millers have no substantial reason to establish that the prices fixed by the state are illegal. Now, millers will have to pay a SAP of Rs 137.50 per quintal for the rejected variety of cane, Rs 140 for the general variety and Rs 145 for the early variety, as fixed by the government.

The UP government had fixed the price for common variety of cane at Rs 140 a quintal while Rs 145 for early variety on October 18. The millers opposed the move saying that it would impact their margin as they are already facing low demand following the global slowdown. They are ready to pay Rs 125 per Quintal for the current crushing season. The state miller association has decided to challenge the decision of Allahabad High Court in the Supreme Court. Association's secretary, SL Gupta said that many mills in the state have poor financial health and the association expects respite from the apex court.

Meanwhile, many millers have started crushing of sugar cane on the basis of SAP fixed by Mayawati led UP government.