The government has directed Punjab and Sindh governments to invoke Sugar Act and other provincial laws against defaulter sugar mills to force them to pay dues to the growers for 2002-03 and 2003-04 seasons. In its directive, the Ministry of Industries and Production said that in pursuance of the Economic Coordination Committee (ECC) of the federal Cabinet decision they should direct the sugar mill owners to clear outstanding dues of the growers for 2002-03 and 2003-04 without any delay, and to take action under provincial laws against those who fail to comply.
Sources said that the directive has come in response to provincial Cane Commissioners' complaint to the ministry that some sugar mills were yet to clear their dues for 2002-03 and 2003-04 seasons.
According to sources, Sindh Cane Commissioner had informed the ministry that Rs 67 million of the growers were outstanding against seven sugar mills in his province.
They said that similar complaint was lodged by Punjab Cane Commissioner. The payments to the sugarcane growers is one of the chronic issues of the sugar sector and some mill owners are on the defaulting list over several years. They always manage to save their skin without clearing of the growers's dues.
The ministry has taken serious notice of Adam Sugar Mills and Yousif Sugar Mills which, according to the directive, fraudulently got clearance certificate from the Cane Commissioner by filing fictitious report of 100 percent payment of dues to the growers to secure payment from Trading Corporation of Pakistan (TCP) for its sugar stocks sold to TCP.
The issuance of fictitious clearance certificate is a very serious issue and the ministry has already taken up the matter with the provincial Cane Commissioners and asked them to explain their position on the subject.
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