KARACHI, April 23: Sugar mills in Sindh have to pay an outstanding amount of Rs2.8 billion to growers against their purchase of cane during the current crushing season.

This was disclosed by the cane commissioner, Sindh, during a briefing given by him to Sindh Food and Agriculture Minister Arif Mustafa Jatoi on Friday.

The cane commissioner said that there was approximately Rs2.8 billion outstanding against the sugar mills in Sindh as compared to about Rs3.8 billion, which was outstanding during the corresponding period last year.

Despite the fact that cane crushed by the mills this year is 500,000 tons more than the last year, but there was an improvement in payment to the growers of around Rs1 billion. The minister observed that an improvement in payment to the growers was owing to close coordination between the growers, industry and the government.

Referring to outstanding dues of the last year, the minister said that out of 28 sugar mills operating in Sindh, 22 mills had cleared their dues at the rate of Rs43 per 40 maund and only three or four mills had yet to clear their dues.

In order to resolve this issue, the minister directed the cane commissioner to put up a summary to the law department, enquiring whether criminal proceedings could be initiated against these mills. Mr Jatoi further observed that these defaulting mills were bringing bad name to the entire sugar industry by holding back growers' hard earned money.