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Business & Finance

Punjab govt issues Sugar Factories Amendment Ordinance, 2020

  • Under the amended ordinance, delay in payment of farmers' dues and the illegal deduction will result in imprisonment for 3 years and a fine of Rs 5 million.
Updated 25 Sep 2020

In order to control the sugar mafia and protect the sugarcane farmers, the Punjab government has issued the Sugar Factories Amendment Ordinance, 2020.

Under the ordinance, delay in payment of dues of sugarcane farmers will result in imprisonment for three years and a fine of Rs 5 million. The ordinance has made major changes in the Punjab Sugar Factories Act, 1950.

Under the amended ordinance, delay in payment of farmers' dues and the illegal deduction will result in imprisonment for 3 years and a fine of Rs 5 million.

Sugar mills will be required to issue a formal receipt for receipt of sugarcane. Sugarcane dues will be credited to the farmer's account. Meanwhile, sugar mill agents will be required to issue formal receipts on sugarcane, and issuing informal receipts to farmers will be a crime.

The ordinance states that the cane commissioner has been given the power to determine and collect the dues of the farmers. The dues can be recovered through the Land Revenue Act. If the dues of the farmers are not paid, the mill owner can be arrested and the mill can be forfeited. The deputy commissioners will be bound to carry out arrest and bail orders.

According to the amended ordinance, the delayed start of sugarcane crushing is punishable by 3 years imprisonment and a fine of Rs 5 million.

Under the Sugar Factories Act, the offense has been made non-bailable and inviolable police and the cases have been transferred from Magistrate First Class to Section 30 Magistrate.