Sugarcane farmers – Right to full payment in 14 days of supply to factory

Sugarcane growers – Right to full payment within 14 days of supply to the sugar factories.

Fair and Remunerative Sugarcane Price Policy of the State Government introduced in 2009 – Policy G.R dated 21.2.2022

Being contrary to the Sugarcane Control Order, 1966 of the Central Government of India framed under Section 3 of the Essential Commodities Act, 1955.

Pl see para 75 of the landmark judgment

Clause 3(3) and (3A) of the Sugarcane Control Order, 1966 of the Central Government, provides that a sugar factory is required to pay price of sugarcane to the farmer within 14 days from the date of supply.  However, by the Government Resolution dated 21.2.2022, the State Government defeated the said provisions and permitted the sugar factory to make payment based on result of crushing season and in two instalments. 

The High Court has now held that the said GR of 21.2.2022 is illegal and  also violation of Section 5(1) of the Maharashtra Regulation of Sugarcane Price (Supplied to Factories) Act, 2013.

MRSP Act, 2013.

Para 50 –

Whether the farmers are entitled to the price of sugarcane supplied to the sugar factory at the FRP  of the Central Government for the relevant crushing season under Section 3(1) of the SCO 1966?

Whether FRP fixed by the Central Government can be deferred by the State Government?

Whether the impugned GR dated 21.2.2022 is in breach of Clauses 3(1), 3(3) and 3(3A) of the SCO 1966?

 Judgment dated 17.3.2025 of the High Court of Bombay in Writ Petition No.5736 of 2022 of Raju alias Devaplpa Anna Shetti and others  Vs.   The State of Maharashtra and others with connected matters