Headnotes
Yadu Sugar Limited, operating a mill with a 7,000-tonne daily crushing capacity in Badaun district, received only about half its estimated cane requirement for the 2025-26 season while several other mills in the area received allocations exceeding their own estimated requirements.
Full Judgment Text
FACTS:
Yadu Sugar Limited operates a sugar mill with a 7,000-tonne daily crushing capacity in Badaun district, Uttar Pradesh. For the 2025-26 crushing season, against an estimated requirement of 100.80 lakh quintals of sugarcane, the mill was allocated only 51.30 lakh quintals. The mill was ultimately able to purchase just 9.17 lakh quintals before shutting operations on January 26, 2026, well short of what a full season's allocation would have sustained.
The petitioner pointed out that seven other sugar mills in the same area received allocations exceeding their own estimated requirements during the same season — one mill, Majhawali, received 190.92% of its estimate. The State sought to justify the lower allocation to the petitioner on the ground of its comparatively low cane drawl and delay in paying cane price to farmers.
COURT'S ANALYSIS:
A Division Bench of Justice J.J. Munir and Justice Siddharth Nandan rejected the State's justification, holding that the petitioner's low drawl was itself a consequence of the inadequate allocation, and could not then be used to justify that very shortfall — a circular argument the Court declined to accept.
The Bench noted that the allocation of 51.30 lakh quintals could sustain the mill's operations for only about 102.6 days, well short of the 180-day crushing season the allocation ought to support. The Court further observed that, assessed proportionately, the petitioner's actual drawl percentage exceeded that of several mills which had received far more generous allocations.
The Court held: "It is the duty of the State to ensure that allocations are made commensurate with estimated requirement, so as to enable a sugar Mill to sustain itself."
HOLDING:
The Allahabad High Court allowed the writ petition and directed the Cane Commissioner to allocate sugarcane for the 2026-27 crushing season in accordance with the mill's estimated requirement, ensuring uninterrupted supply for the full 180-day season.
Source: LiveLaw, "Discriminatory Sugarcane Allocation Below Mill's Requirement Can't Be Justified By Delayed Payments: Allahabad High Court," September 10, 2026.
Yadu Sugar Limited operates a sugar mill with a 7,000-tonne daily crushing capacity in Badaun district, Uttar Pradesh. For the 2025-26 crushing season, against an estimated requirement of 100.80 lakh quintals of sugarcane, the mill was allocated only 51.30 lakh quintals. The mill was ultimately able to purchase just 9.17 lakh quintals before shutting operations on January 26, 2026, well short of what a full season's allocation would have sustained.
The petitioner pointed out that seven other sugar mills in the same area received allocations exceeding their own estimated requirements during the same season — one mill, Majhawali, received 190.92% of its estimate. The State sought to justify the lower allocation to the petitioner on the ground of its comparatively low cane drawl and delay in paying cane price to farmers.
COURT'S ANALYSIS:
A Division Bench of Justice J.J. Munir and Justice Siddharth Nandan rejected the State's justification, holding that the petitioner's low drawl was itself a consequence of the inadequate allocation, and could not then be used to justify that very shortfall — a circular argument the Court declined to accept.
The Bench noted that the allocation of 51.30 lakh quintals could sustain the mill's operations for only about 102.6 days, well short of the 180-day crushing season the allocation ought to support. The Court further observed that, assessed proportionately, the petitioner's actual drawl percentage exceeded that of several mills which had received far more generous allocations.
The Court held: "It is the duty of the State to ensure that allocations are made commensurate with estimated requirement, so as to enable a sugar Mill to sustain itself."
HOLDING:
The Allahabad High Court allowed the writ petition and directed the Cane Commissioner to allocate sugarcane for the 2026-27 crushing season in accordance with the mill's estimated requirement, ensuring uninterrupted supply for the full 180-day season.
Source: LiveLaw, "Discriminatory Sugarcane Allocation Below Mill's Requirement Can't Be Justified By Delayed Payments: Allahabad High Court," September 10, 2026.
Cases Cited & References
- 1. 2026 LiveLaw (AB) 691