The introduction of contract system in agriculture produce market committee was strongly resented by the agro-base industrialists, traders and businessmen through out the province.
Their resentment was based on the argument that since the contract system is not in vogue anywhere in the country particularly in Punjab why it was introduced in Sindh, and termed it as detrimental to economic growth.
The industrialists and traders organisations has decided to call upon Sindh governor Dr Ishratul Ibad on May 31, and apprise him of the situation as well as request him to abolish the contract system in agriculture produce market committee.
When contacted, Agriculture Extension Director-General Mohammad Akram Malik to comment over the situation, he said from the very inception of the market committees the industrialist, traders, dealers and businessmen resisted this Act to save themselves from the binding and control of Agricultural Produce Market Act - 1939 and the rules made thereunder.
He said the traders challenged the constitutions of the market committee in the court of law and even at apex court, but at last the honourable Supreme Court has finally decided the matter with regard "Market" and "notified area" and various other operational methods, justifying the constitution of the market committee and the petitioners were directed to pay the market fee in accordance with the provisions of the Market Act.
Referring to their argument that why there is not contract system in Punjab and other federating units whereas this system was introduced only in Sindh, he said in Punjab every sugar, rice, oil and flour mills are paying market fee regularly to market committees of their respective areas whereas in Sindh except for three sugar mills, under the directive of the Supreme Court, are paying market fee while other 24 mills are defaulting payment of market fee to the tune of Rs 1,081 million.
Akram Malik said around 600 rice mills, about 100 roller flour mills, over 100 oil mills and a large number of small grinding units (chakkies) are defaulting payment of market fee with the result majority of the market committee in the province were running in deficit and the development of infrastructure was in doldrums.
He said it was for this reason that the government of Sindh introduced contract system in 1994 in some districts of the province and when it was found beneficial, the Sindh government amended the Rules 29-A and conferred authority to market committee to auction the rights of recovery of market fee to private contractors through open auctions.
Akram Malik said to bring an end to the contract system, it is imperative that agro-based industrial sector should pay market fee regularly in accordance with the provision of the Market Act.
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