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High Court Questions Recovery Certificates Issued to Sugarcane Farmers in Uttar Pradesh

The Allahabad High Court's Lucknow bench has raised concerns over the issuance of recovery certificates to sugarcane farmers in Uttar Pradesh, questioning the reduced interest rate of 12 percent instead of the mandated 15 percent. This scrutiny follows a public interest litigation filed in 2006, prompting the court to seek details from the sugarcane commissioner about past commissioners and their actions. The court aims to determine if there was any collusion involved in this matter, with the next hearing set for August 31. This case highlights ongoing issues regarding farmers' payments and legal accountability in the agricultural sector.
By Narendra Chaudhary Aug 5, 2026, 23:51 IST

Court's Concern Over Delayed Payments to Sugarcane Farmers

Lucknow, August 5 - The Lucknow bench of the Allahabad High Court has expressed serious concerns regarding the issuance of recovery certificates to sugarcane farmers in Uttar Pradesh, which are being issued with an interest rate of 12 percent instead of the mandated 15 percent for delayed payments. The court has requested details from the sugarcane commissioner regarding the issuance of such certificates after December 2, 2021.


This directive came during the hearing of a public interest litigation filed by VM Singh, the coordinator of the Kisan Mazdoor Sangh, in 2006. Justices Rajan Roy and Manjiv Shukla emphasized the need for accountability from the sugarcane commissioner, asking for a list of all previous commissioners who served after December 2, 2021, and issued recovery certificates under the Uttar Pradesh Sugarcane Act of 1953.


The bench noted that issuing recovery certificates with a 12 percent interest rate, rather than the 15 percent stipulated, appears to be a contempt of the High Court's order from December 23, 2021. Furthermore, the court indicated it would investigate whether this action was taken collusively or if it was intended to provide financial benefits to sugar mills at the expense of sugarcane farmers.


The next hearing in this matter has been scheduled for August 31.