Sugar mills in Sindh, which have failed to clear dues of the growers, may not be allowed to operate in the new sugarcane crushing season, which is scheduled to start from November 1.
A decision to this effect has been taken by the provincial government with the purpose that the mills, which are defaulting, may be forced to make payment of the outstanding dues of the growers.
Sugar industry suffering from equity problems have withheld the payment of growers dues for the last couple of years. Some are reportedly making payment and many are not making any move in this behalf.
The Sindh government is reported to have conveyed its decision to the Sindh Abadgar Board that defaulting mills may not be allowed to start cane crushing during the next season starting from November 1.
It is still not confirmed whether the mills would resume seasonal crushing from November 1. The mills had, however, made commitment with the government that they would resume crushing from November 1 if the government purchased 0.3 million tonnes from them.
The Trading Corporation of Pakistan (TCP) has, however, purchased this quantity, but it is yet to be seen whether the mills would fulfill their commitment.
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