KARACHI: The Sindh High Court on Friday directed the Sindh chief secretary to convene a meeting with all stakeholders, including representatives of sugar mills and sugar cane growers to finalise sugar price.

Vacating a stay on the sugar cane crushing granted on the plea of sugar manufactures, a two-judge bench headed by Chief Justice Maqbool Baqar directed the chief secretary to continue the deliberation until the decision regarding fixation of the price was made and finalised.

The court also directed the chief secretary to forward a summary in this regard to the Sindh chief minister for his consent by Nov 30 and submit a report to this effect on Dec 1.

The bench that also comprised of Justice Shahnawaz Tariq was hearing the petition of as many as 20 sugar mills, represented by Advo­cates Abdul Hafeez Pirzada, Abdul Sattar Pirzada, questioning the legality of Section 16 of the Sugar Factories Control Act, 1950 that gives the provincial government powers to unilaterally fix a minimum price of sugar cane.

Earlier on Nov 9, the authorities concerned were directed by the bench to constitute a committee comprising all stakeholders to decide the fixation of the price.

On Friday, Advocate Pirzada told the judges that the deputy secretary of the agriculture, supply and price department sent a letter to the sugar mill owners association for a meeting.

He asked the court to direct the provincial government to convene the meeting at the earliest so that decision for fixation of sugar price for the season could be made.

He told the judges that the present sugar price was fixed at Rs49 per kilogram in the province, while it should be between Rs60 and Rs70 per kg in view of the enhan­c­ed price of sugar cane.

According to the petitioners, the impugned section of the act conferred uncontrolled and unguided powers and discretion on the provincial government to unilaterally decide sugar cane price.

Their counsel contended that provisions of the act imposed an unreasonable restriction on the petitioners to sell sugar as the provincial government fixed minimum price of sugar cane arbitrarily and in that respect there was no reasonable protection against misuse of power and no provision for check by way of the appeal or otherwise.

He informed the judges that the adverse impact of a notification under the impugned provision was that many sugar mills were being forced to supply and sell refined sugar at below its cost.

The counsel said the notified minimum price for crushing season 2012-13 and 2013-14 was Rs172 per 40kgs.

The counsel said that the committee arbitrarily increa­s­ed the sugar cane price to Rs180 per 40kgs.

He asked the court to restrain the authorities from issuing a notification in respect of minimum price of sugar cane.

The court was also requested to declare that the impugned provision violates the fundamental rights of petitioners and is ultra vires of the constitution.

Published in Dawn, November 29th, 2014