Ponni Sugars (Erode) Ltd, a leading sugar producer in Tamil Nadu, has been directed to pay additional cane prices for the previous sugar seasons.
In an exchange filing, Ponni Sugars stated, “we wish to inform that Director of Sugar/ Cane Commissioner of Tamil Nadu has passed order dated 09-09-2024 (received on 12-09-2024) for payment of additional cane price per tonne of sugarcane by our company for sugar seasons 2004-05 to 2008-09 determined under clause 5A of Sugarcane (Control) Order 1966.”
The company informed that the additional cane price determined as per order is payable for sugar seasons 2004-05 at 16.80/MT and for 2008-09 at 49.96/MT. No sum payable for other periods. The quantum of claims, if any would be Rs. 6.52 crores
According to the company, this will result in an estimated cash outflow of Rs. 4.12 crores.
“Hon’ble High Court of Madras on 19.10.2023 dismissed the Writ Appeal filed by South Indian Sugar Mills Association (SISMA-TN) against the Common Order dated 13.12.2019 in W.P.No.7872 of 2015 challenging additional cane price fixation under the omitted Clause 5A of the Sugarcane Control Order, 1966 after repeal of the extant provisions for the sugar season 2004-05 to 2008-09.” company also informed in an exchange filing.
Click here to read the exchange filing
