Delay in payments to growers: Commissioner warns sugar mills in Punjab of legal action

LAHORE: The Cane Commissioner Punjab has issued notices to 25 sugar mills of the province to furnish grower-wise details of sugarcane purchased and payment made for the last two years to ascertain markup on delayed payments to the growers or face legal action under Section 21 of the Punjab Sugar Factories (Control) Act, 1950.

The Cane Commissioner has asked for this data to be furnished to its office by November 27, 2020, after which legal action will be taken against the failures. According to the law, 11 percent markup is to be paid by the mills to growers on payments delayed by over 15 days.

The letter sent to these mills said that they were issued letters on September 11, 13, 15, 18, 26 and then September 30 for provision of grower-wise/date-wise details of purchase of sugarcane and payment of its price as per format.

However, the direction was challenged and later the petition was referred to the Cane Commissioner Punjab for disposal through a speaking order. The cane commissioner decided the matter and rejected the contentions of the petitioner sugar mills. However, he admitted the contention of the mills that record of purchase of cane at purchase centres can only be preserved by the sugar mills for a period of two years, as envisaged by Rule 16 (8) of the Punjab Sugar Factories (Control) Rules, 1950. This order of the Cane Commissioner was also upheld by the Lahore High Court, Lahore vide order dated 17.11.2020, the notices issued to the mills mention.

The Cane Commissioner while deciding that petition also given a one-week time to the mills for provision of two years sale purchase data after which the mill owners have been issued notices again to submit the record or be ready to face the legal action which also include registration of cases.

Cane commissioner Punjab Zaman Wattoo while talking to Business Recorder said that the provincial government is committed to safeguarding the rights of sugar cane growers and can go to any extent under the law in this regard.

He said all the recent steps taken by his office are the proof of this commitment.

Copyright Business Recorder, 2020