Punjab brings new law to protect sugarcane growers

The PTI led Punjab government has introduced the Sugar Factories (Control) Amendment Ordinance 2020, criminalising delay in payment to farmers as well as issuing handwritten receipts to them while purchasing sugarcane.

The ordinance has brought amendments to the Sugar Factories (Control) Act 1950 in a bid to protect the sugarcane growers from exploitation by the alleged sugar mafia that has been under the spotlight since emergence of a sugar crisis earlier this year.

Under the Sugar Factories (Control) Amendment Ordinance 2020, a factory owner/official/agent may be awarded up to 3-year-imprisonment and Rs5million fine if he is found guilty of delaying payment to the sugarcane growers or illegally deducting money on pretext of weight of the stock.

The purchase of sugarcane could only be made by issuing a proper, official receipt and a factory will have to face legal consequences if it is found to be issuing a handwritten ‘katchi’ receipt to a grower.

The factories will credit payment to the sugarcane farmer’s account. The Sugar Factories (Control) Amendment Ordinance 2020 empowers the cane commissioner to determine and collect the dues of the farmers.

The office of the cane commissioner was established in 1950 to implement the powers vested in him under the Punjab Sugar Factories Control Act, 1950 and Punjab Sugar Factories Control Rules, 1950. Punjab director food was ex-officio cane commissioner in Punjab till 2000-01.

The cane commissioner will recover these dues through the Land Revenue Act.

If the farmers’ dues are not paid, the mill owner can be arrested and the mill can be seized. The deputy commissioners will be bound to carry out arrest and bail orders.

According to the amended ordinance, the delayed start of sugarcane crushing is punishable by 3-year-imprisonment and a fine of Rs5 million. The offense has been made non-bailable and inviolable and the cases have been transferred from Magistrate First Class to Section 30 Magistrate.

 The sugar mills owners have expressed concern over the new law, which, they said, will make business impossible. They said it is an attempt to close down sugar mills in the province and have called an emergency meeting to discuss the ordinance and announce a joint-strategy.

The federal government had formed a sugar inquiry commission in March this year to probe into a sudden shortage of sugar that resulted in a steep hike in its prices in January this year.

 In its forensic report – issued on May 21 – the commission had accused the sugar mill owners of earning illegal profits to the tune of billions of rupees through unjustified price hikes, benami transactions, tax evasion, misuse of subsidy and purchasing sugarcane off the books.