Punjab govt moves against defaulting sugar mills

The Punjab government said on Saturday that it had begun legal action against sugar mills not making payments to farmers.

“As many as nine sugar mills have been taken into custody by DCOs on non-payment to the sugarcane growers so that after auctioning stock or mill, dues could be paid to the farmers,” a statement released by the Punjab government said on Saturday.

According to the statement, under Punjab Sugar Factories Control Act, all sugar mills are bound to make payment within 15 days after the purchase of sugarcane. On the direction of Punjab chief minister, the Punjab cane commissioner closed four sugar mills and took into custody through DCOs by declaring farmers’ dues as government dues under the Land Revenue Act for payment of outstanding dues of 2014 and started the process of auctioning which include Chishtia Sugar Mills Sargodha, Abdullah Sugar Mills Okara, Abdullah-II Sugar Mills Sargodha, Haseeb Waqas Sugar Mills Nankana Sahib and Colony Sugar Mills Khanewal. Earlier, the sugar of five crore rupees of Colony Sugar Mills was auctioned and payment was made to the farmers. Four sugar mills have been taken into custody through DCOs for payment of dues of 2015 so that stock or mill could be auctioned under the Land Revenue Act and Sugar Factories Control Act and payments were made to farmers which include Shakar Gunj–I Sugar Mills Jhang, Shakar Gunj–II Sugar Mills Jhang, Hussain Sugar Mills Faisalabad and Brother Sugar Mills Kasur.

The spokesman told that 143 billion rupees were outstanding for crushing season 2014, out of which, 99.9 percent payment has been made while legal action is continuing for outstanding amount whereas out of total dues of 134 billion rupees of crushing season 2015, 131 billion rupees have been paid. The Punjab government has taken strict measures against sugar mills in the interest of farmers for the payment of dues of three billion rupees. The spokesman further told that the defaulter sugar mills of crushing season of current year obtained stay orders against the orders of cane commissioner. However, the food department vigorously pursued the case and the advocate general is personally appearing so that farmers could be provided their rights.