The Uttarakhand government has set up an expert committee, comprising representatives of private sugar mills and other experts in the field to decide the SAP.
The committee was set up after private mill owners moved the high court challenging the government's State Administered Price (SAP)--the rate at which millers buy sugarcane from farmers--in 2007-08, saying it was done in an arbitrary manner as the cane board, mandatory under the act regulating supply and purchase of cane in the state, was not set up.
There are 10 sugar mills in the state out of which 6 are in the government and cooperative sector and rest in private hands.
The government brought in the Uttar Pradesh Cane Regulation of Supply and Purchase Act, 1953 Amendment Bill 2009, in the state assembly for setting up the committee, which will be headed by chairman of state cane development advisory committee.
It also comprises agriculture experts, representatives of sugarcane mills and cane growers. The committee is headed by additional secretary Vinod Sharma.
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