Cane commissioner bars sugar mills from making cash payments to growers

LAHORE: The Cane Commissioner Punjab has barred the sugar mills operating in the province to make cash payments to the sugarcane growers to discourage the practice of illegal deduction from growers.

A notification issued by the Cane Commissioner said that by virtue of recently promulgated Sugar Factories (Control) (Amendment) Ordinance 2020, an amendment in Section 13 makes it mandatory for the sugar mills to make payment to the cane growers through a bank, directly into the bank account of the cane grower. Any cash payment will be considered as an offence after the promulgation of the Ordinance on 24th September, 2020.

The notification further said that penalty of the offence of cash payment has also been provided in the amended section 21 of the aforementioned Act. The notification also directed the sugar mills not to make cash payment against the CPRs, even if these pertain to the previous crushing seasons.

However, the restriction of direct payment into bank account shall not be applicable on the sums/amounts declared as arrears of land revenue for payment of which, the DCs/Additional Cane Commissioners would direct the mills under the provisions of relevant laws/rules, including payment through cross cheque or bank draft/pay orders in the name of the cane grower concerned, the notification concluded.

It may be added here that amendment in Section 21 of the previous sugar factories control act prescribes both fine and imprisonment for violators of the Sugar Factories (Control) (Amendment) Ordinance 2020.

Cane Commissioner Punjab Muhammad Zaman Wattoo talking to Business Recorder said previously that some mills indulged in the practice of deducting 15% and getting signatures on full amount from the farmers. Middlemen were also indulged in this practice of depriving the grower from right compensation of his produce. “Now full payment will have to be made by the mill directly into the account of farmers,” he concluded.

Copyright Business Recorder, 2020