Govt spokesman says their stocks could be auctioned to clear farmers’ arrears. PHOTO: APP
The provincial government on Saturday took custody of nine sugar mills through district administrations for non-payment of dues to sugarcane growers.
According to a statement issued by the Directorate General of Public Relations (DGPR), the Punjab cane commissioner took five sugar mills into custody through DCOs under the Land Revenue Act on their failure to pay outstanding dues for sugarcane procured during the 2014 crushing season. These were: Chishtia Sugar Mills, Sargodha; Abdullah Sugar Mills, Okara; Abdullah-II Sugar Mills, Sargodha; Haseeb Waqas Sugar Mills, Nankana Sahib; and Colony Sugar Mills, Khanewal.
Four others sugar mills were taken into custody through DCOs on their failure to clear dues for the 2015 season. They are: Shakar Gunj–I Sugar Mills Jhang, Shakar Gunj–II Sugar Mills Jhang, Hussain Sugar Mills Faisalabad and Brother Sugar Mills Kasur.
A government spokesman said that sugar mills had to pay Rs143 billion to farmers for the sugarcane bought in the 2014 crushing season. “Out of the total outstanding dues for 2014, 99.9 per cent payments have been made,” he said.
He said the stock of mills taken over on Saturday would soon be auctioned to clear the remaining arrears.
Of the 2015 season, he said Rs134 billion was the total amount owed to the farmers by the mills. He said Rs131 billion had been cleared. The remaining amount would soon be cleared.
He said some sugar mills with outstanding payments had obtained stay orders from the court. “The Food Department is vigorously pursuing the case.
The advocate general is regularly appearing in the court on behalf of the government.
We are determined to take action to ensure payment of dues to sugarcane growers,” the spokesman said.
Earlier, he said sugar stock of Colony Sugar Mills was auctioned for Rs50 million and the funds used to clear farmers’ dues.
Under the Punjab Sugar Factories Control Act, mills are required to pay farmers within 15 days of the purchase of sugarcane.
Published in The Express Tribune, September 20th, 2015.
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