SHC inquires if govt willing to offer subsidy to growers or millers

Lawyers directed to assist court whether petitions could be disposed of if govt agrees to subsidy

KARACHI: The Sindh High Court (SHC) directed on Monday the provincial advocate-general (AG) to seek instructions from the Sindh government as to whether it will give any subsidy or relief either to the sugar cane growers or sugar mill owners on the sale and purchase of sugar cane this year.

A two-judge bench, headed by Justice Aqeel Ahmed Abbasi, also asked lawyers representing the growers and mill owners to assist the court on the possibility of such assurance from the government today (Tuesday) when the matter will be taken up again.

The bench passed these directives after hearing arguments from the parties in the matter involving dispute over fixation of price of sugar cane by the provincial government for the sugar mill owners to purchase it from the growers.



After hearing arguments from the lawyers representing both the parties and AG Barrister Zamir Ghumro, the judges observed that there was a likelihood of the settlement of dispute between the parties in terms of orders passed by the court under similar circumstances in another petition, whereby petitions were disposed of by consent on the point that the government will give subsidy to the growers.

Barrister Ghumro requested the SHC for a short adjournment to intimate the provincial government regarding court remarks and seek instructions in this regard.

Accordingly, by consent, the bench adjourned the hearing till today. It directed the lawyers to come prepared and assist the court as to whether the petitions can be disposed of by consent in terms of earlier order passed by a division bench of the SHC on a petition relating to the crushing season for 2014-15, whereby any assurance of the Sindh government regarding subsidy or relief to either party shall be duly signed by the competent authority. Such assurance, if offered, will be made part of the court order, the judges told the parties.

 

Case history

The growers had approached the court last month, arguing that they were paid a lesser price for sugar cane against the minimum price of Rs182 per 40 kilogrammes (kg) fixed by the government. They alleged that sugar mills operating in the province also did not fulfil their obligations in the previous crushing season and the fixing of the price was pending before the Supreme Court, which covered the entire range of the issue.



The mill owners' lawyer had challenged the government notification on fixing the price at Rs182 per 40kg, arguing that the millers were not under any legal obligation to give effect to the same as the notified price was not viable and would result in losses to the mills.

On the request of both the parties for interim relief, the court had on December 23 directed the sugar mills to pay Rs172 per 40kg to sugar cane growers and furnish security of the differential amount to the nazir of the court.