Punjab moves to protect sugarcane growers

Considers amendments to prevent sugar mill owners from deducting and deferring payments

LAHORE: Sugarcane growers have long complained that they are not being paid their dues by the owners of mills they sell to. Luckily for them, the Punjab government has now decided to step in and help by amending the existing law to protect them from any unfair deduction and delays in payment.

Speaking to The Express Tribune, sources familiar with the development said proposed amendments to the Sugar Factories Control Act will be taken up at a high-level meeting set to take place today (Tuesday). Both the provincial food secretary and the cane commissioner will be present at the meeting.

According to the sources, the proposed amendments, among other steps, will make it mandatory for sugar mill owners to pay sugarcane growers through banks. They added that the amendments will also grant official document status to the cane procurement receipt (CPR) that sugarcane growers receive from mills while concluding a sale. As such, not only will mills be bound to issue a CPR to growers, it will also allow the latter to pursue any disputes that arise using the receipt.

Govt likely to raise wheat, sugarcane support prices

“Sugarcane accounts for a significant chunk of Punjab’s overall agriculture produce, but those who grow it have time and again complained of payment issues,” an official privy to the development said. “The growers say the mills often pay them less on account of ‘sweetness’ or hand them CPRs without paying them the full amount and promising to pay the rest on instalments.”

“The provincial government also realised that mills are not making payments through banks, another reason why growers suffer the aforementioned problems,” the official added. “So, on Prime Minister Imran Khan’s direction, the Punjab government has decided to amend the Sugar Factories Control Act.”

When contacted, Punjab Cane Commissioner Wajid Ali Shah said protecting sugarcane growers is one of the government’s top priorities. “We have taken many steps already and saved Rs550 million, most sugar mills have sorted out all dues to growers,” he said. “Now, we are looking at amending the law to protect growers from illegal deductions and deferred payments.”

Kissan Ittehad (Farmers’ Union) President Khalid Khokhar complained a ‘sugar mill mafia’ has long exploited sugarcane growers. “We have complained several times, so the proposed amendments are welcome. But it is imperative that the new law, once enacted, be strictly enforced,” he said.   

Published in The Express Tribune, December 17^th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.