KARACHI: Sindh defies Centre on crushing season date: PA debate ends
By Our Reporter
KARACHI, Nov 14: Amid criticism of the federal government’s decision by MPAs, the Sindh government remained firm on commencing the sugarcane crushing season from Saturday (Nov 15), but at the same time justified downward price fixing.
Th provincial government’s stand was spelt out by Senior Minister Syed Sardar Ahmed on the floor of the House while winding up the debate on the row between sugarcane growers (Abadgars) and sugar mill owners over price fixing and payment of arrears.
At the very outset, he stressed that the whole affair was an economic issue and should not be politicized. He also defended the downward revision of sugarcane procurement price and asserted that the government was competent to do so.
He said the price was lowered because Rs43 per maund was not realistic in view of the losses incurred by the mill owners last year.
As the government is unable to compel the millers to clear the growers’ dues, it took upon itself the responsibility to pay 25 per cent of the arrears of differential price (between Rs40 and 43) to the growers before Nov 23. The amount, estimated at Rs250 million, will be recovered from the sugar mill owners, the minister explained.
During the debate the federal government’s arbitrary decision to extend the date for the commencement of crushing season was bitterly criticized by either side of the divide and the government was asked to stick to its original decision.
Syed Qaim Ali Shah of the PPP said the issue was very important because it also involved constitutional interpretation of the decisions of the provincial cabinet which according to Article 130 of the Constitution is a constitutional institution. As such, he stressed, the Sindh government was answerable to the House and to no one else.
Mr Shah said that once a decision was taken by the cabinet to start the crushing season on Nov 1, it was bound to stick to it.Surprisingly, the decision was changed later by a sub-committee.
He contended that the sub-committee had no authority to over rule cabinet’s decisions. Mr Shah also indicated at the split within the cabinet over price fixing as three of the ministers had supported the price to be fixed at Rs43 per maund as demanded by the growers and majority of the House. Mr Shah supported the contention of Syed Murad Ali Shah on the interpretation of the notification about crushing season.
He recalled that last year also the cabinet decision was not implemented. While the cost of inputs for the crop was going up, why the price of sugarcane was lowered? he questioned. He said the minister’s decision in this regard meant that stakeholders had not been taken into confidence.
He welcomed the chief minister’s statement that crushing seasons would commence on Nov 15, but insisted that price should also be fixed at Rs43. He said Sindh should not follow Punjab or other provinces in taking such decisions due to different conditions prevailing in other province.
Minister for Agriculture Arif Jatoi, on a point of personal clarification, said that mill owners, Abadgars and Chamber of Commerce all had been consulted when the decision on price had been taken.
Syed Sardar Ahmed said the Muttahida Qaumi Movement could not remain indifferent to the problems confronted by the poor growers as the party represented the downtrodden. Responding to various questions raised by members from both sides, Syed Sardar Ahmed said that fixing sugarcane procurement price, a datefor starting crushing season and quality premium all were the matters to be sorted out and determined by the provincial government under the Sindh Sugar Control Act 1950.
He cited Section 8 of the Act which says: “the occupier (the person who has ultimate control over the factory and includes MD of the sugar factory) shall start crushing not later than the date specified by the provincial government through a notification.” Section 2 sub-section (h) defines crushing season as the period beginning on October 1 and ending on April 15.
The minister also cited Section 16(i) which reads: “the government may, by notification, determine the minimum price to be paid by the occupiers of the factories for the cane purchased. He said that to Section 16 (ii) provided that the government may, from time to time, vary by notification the price fixed under sub-section (i).
With regard to quality premium, he said that under sub-section (v) of same Section, “the government may direct the factories to pay quality premium at the end of the crushing season at such rate as may be specified by the provincial government in proportion to the sucrose recovery of each factory in excess of the base-level sucrose contents determined by the government from time to time.”
He said that the cabinet had on October 22 had fixed the date for the commencement of crushing season as November 1 and the minimum price at Rs43 per maund on the basis that differential between the prices in Punjab and Sindh would not exceed Re1 per maund. However, he said, no notification was issued.
Syed Sardar Ahmed told the House that when Punjab declined to raise the procurement price from Rs40 per maund, and the Centre also refused to impose 50 paisa per kg as sugar cess, the mill owners protested over fixing of the price at Rs43 per maund. A ministerial meeting under Sindh CM was convened on Nov 3 but no decision could be taken. However, in the evening a meeting attended by Minister Syed Qamaruz Zaman Shah, President of the Chamber of Agriculture, and Abdul Majeed Nizamani, Chairman of the Abadgar Association, agreed to fix the price at Rs41 per maund. Accordingly, the second special meeting, held on Nov 4, fixed the same price and also the date for the start of the crushing season as Nov 14.
He said the provincial government stood by its notification and would ensure that firm action was taken against those who wouldviolate the provisions of the Act.
He also held out the assurance that the government would ensure implementation of the sub-committee’s recommendations that payment growers be paid arrears by December 31 and quality premium by January 31. Defaulter mill owners would face action under the Sindh Land Revenue Act 1967, he added.
Syed Ahmed Ali Shah, Begum Gulzar Unnar, Shamim Ara Panhwar, Mohammad Nawaz Chandio, Rafiq Engineer, Heer Ismail Soho and Syed Jalal Shah Jamot also participated in the debate.
Later Speaker Syed Muzaffar Hussain Shah reserved ruling on Ms Humera Alwani’s privilege motion until Monday. Ms Alwani had claimed that her privilege had been breached owing to the attitude of Health Secretary. Syed Qaim Ali Shah supported her claim.
The Speaker reminded the provincial government that it had to arrange for the presence of Mohajir Qaumi Movement’s Yunus Khan in the House during the current session.
He adjourned the proceedings till Monday when debate on law and order would be initiated.
