The Cane Commissioner Sindh has directed sugar mill owners for the payment of outstanding amount of Rs 1.120 billion to growers with regard to payment of quality premium and other dues for 2002-03 by end of current month, to avoid legal action under the Sugar Factory Control Act.
Twenty two sugar mills are defaulting Rs 1.071 billion on account of quality premium payment to growers despite the decision of the honourable Sindh High Court in favour of growers and no notice or stay against the decision has been received from the apex court till date, as such the mills' management are under legal obligation to pay the quality premium in due course of time.
Nazar Baloch also asked management of the mills to ensure timely payment to growers and submit their daily payment position for onward transmission to Sindh Government.
He directed the sugar mills to refund an amount of Rs 194.5 million on account of surcharge within next fifteen days.
Nazar Baloch has constituted a committee of technical experts to probe into the sugar mill owners' complaint that the growers of central Sindh have cultivated inferior quality of sugarcane containing poor recovery rate.
He clarified that no ban has been imposed on any sugarcane variety so far and directed the sugar mills not to deduct any amount without the prior permission from him.
The Cane Commissioner said the middlemen system would not be tolerated and directed the mills management to discourage the middlemen Mafia, as they are causing unbearable losses to cane growers.
Referring to the demand of mills' management for withdrawal of 18 percent excise and sales tax from the sugar production, he said that the matter was pertaining with the Federal government and added that the provincial government is not authorised to take any decision on the matter.
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