In Brief
The State of Uttar Pradesh challenged a High Court order requiring a sugar mill to reserve only 25% of its balance molasses stock (after captive consumption) for supply to country liquor distilleries. The mill had argued its entire production was needed for its distillery. The Supreme Court held that the Molasses Policy 2015-16 mandates 25% reservation of total production, adjusted downward only if balance stock is insufficient—not limited to balance stock under all circumstances. The 2015-16 Policy, though referencing an earlier judgment, differs fundamentally in text from that case. The High Court erred in treating them identically and misread the Policy formula. The appeal was allowed and the Policy's implementation upheld.
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