Growers want fresh tenders floated for sugar mills

15 Apr, 2004

Growers organisations expressed strong reservations over the proposed privatisation of Thatta and Dadu Sugar Mills, having assets of around Rs 1.3 billions, at through-away prices and demanded that fresh tenders may be floated to attract genuine buyers.
According to sources the highest bid offered by the interested parties is reported to be Rs 150 million for Dadu Sugar Mills and Rs 50 million for Thatta Sugar Mills.
They said it seem that the bid was offered by the cartel of scrap dealers who are interested in the valuable lands of the mills and their machinery which later could be sold in scrap instead of running the sugar mills.
They said that the bid offered for Dadu Sugar Mills, which is in running condition is Rs 150 million whereas it is defaulting payment to growers for their produce to the tune of Rs 7.27 millions and if 18 percent mark-up was included, the defaulted amount would further increase.
The closure of mills would defeat the economic purpose as over 1,050 workers including skilled workers would be rendered jobless and around 50,000 families would suffer.
The Advisor to Sindh Chief Minister on Information and Archives, Salahuddin Haider who along with provincial Adviser for Public Affairs Manzoor Hussain visited the mills to distribute cheques of two-month salaries to the employees of the Dadu Sugar Mill told reporters that the mills machinery was in perfect running condition and the trained and skilled staff is available but unfortunately the mill was running in losses due to financial mismanagement, inept administration and hostile attitude towards the workforce.
Haider said countries having strong economies are paying full attentions towards the welfare of their workforce knowing well that willing workers will help achieve the objective of real progress.
He said the privatisation commission must weighed all aspects of the privatisation of the mills including the interest of workforce and economic conditions of the area otherwise it would be an exercise in futile as it will not serve any purpose.
Haider urged upon the Sindh privatisation committee to take up the matter with the federal government and convince it that instead of disposing off provincial assets in scandalous form, it would be better if the mills were made functional again by public sector or private sector.
He agreed with the mill workers that they should either be offered golden handshake if the privatisation was imperative or it should be made obligatory upon buyers to retain them in service for a period of one year.
The Sindh cane commissioner when contacted said that to run sugar mills, an entrepreneur fully acquainted with sugar production and trade is needed to make mills production economically viable and added that is only possible by developing by-products.

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