The management of sugar mills in Sindh will have to face legal action following their decisions not to resume seasonal crushing from October 15.
Industry sources told Business Recorder that Sindh government had directed sugar mills to resume crushing from October 15, but it has now been delayed by the recent rains. Besides, there are some other reasons to delay the operation for 15 days more.
A press conference has been convened by the Sugar Mills Association (Sindh Zone) on Monday where the situation will be explained about the delay in the operation. It will also be explained that mills may not be able to pay the minimum price of Rs 43 per 40kg to the growers.
When asked about the nature of the legal action, the industry sources said that it is yet to be seen.
It will be recalled that Pakistan Sugar Mills Association (Central) has already supported the Sindh Zone while saying that in case any legal action is taken against any mill owner, there would be overall boycott of crushing during the current season.