The sugar mills are openly violating the official procurement rates of sugarcane, claims the petitioner. PHOTO: EXPRESS
Headed by Justice Aqeel Ahmed Abbasi, the division bench also ordered the mills to be named party to the proceedings. The Sindh Chamber of Agriculture had taken the provincial authorities to court for not paying the price set by the government.
The chamber's president, Dr Syed Nadeem Qamar, submitted that the SHC had on May 28, 2004, ordered the formation of a committee, headed by the federal secretary for industries department and all the provincial chief secretaries, the representatives of the sugar mills association, the Sindh Abadgar Board, to fix a fair, reasonable price for sugarcane by considering various relevant components, including the cost of production.
He recalled that various rounds of discussion were held under the chairmanship of Sindh secretary agriculture, during which the petitioner submitted its proposal for fixing the minimum support price of sugarcane at Rs210 per 40 kilogrammes. "This proposal was debated upon and was decided that that the minimum support price for crushing season 2014-15 should be Rs182 per 40kg," he added.
On November 7, 2014, the agriculture secretary had issued an official notification approving the minimum price of sugarcane at Rs182 per 40kg for the crushing season of 2014-15. On the same date, the secretary also issued another notification, specifying November 14 for the commencement of the crushing season.
Dr Qamar said the respondents have failed to implement the notification, affecting the livelihood of the sugarcane growers. "Deregulation of sugar prices and the commencement date of the crushing season have left the sugarcane farmers at the mercy of private sugar mills and the middlemen," he added.
He alleged that 25 sugar mills were paying sugarcane prices at Rs150 to Rs155 per 40kg, instead of the officially fixed price, which is completely an arbitrary, capricious, unlawful, unconstitutional and gross violation of the notification.
The judges were told that the representatives of growers, including the petitioner, approached the management of the mills for paying the officially determined price, but to no avail. Later, complaints were submitted to the agriculture secretary and the provincial cane commissioner to initiate action against such millers but they have also failed to act.
The petitioner pleaded the court direct the authorities to implement the notification, through which the minimum support price was fixed at Rs182 per 40kg.
The court was also requested to order them to take action under the Sugar Factories Control Act 1950 against the 25 sugar mills for violating the officially determined price and harassing the growers.
The bench issued notices to the respondents to file their comments within two weeks. The petitioner was also directed to name the sugar mills, which are denying the official price, as party to the proceedings.
Published in The Express Tribune, February 3rd, 2015.
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