KARACHI, Aug 21: Sugar mills paid Rs400 million to sugarcane growers by Aug 15, the deadline set by the Sindh agriculture department for payment of cane dues, which amounted to over Rs2.6 billion.

Sindh Cane Commissioner Nazeer Hassan Jamali told Dawn on Thursday that the mills, which made payment include Faran, Habib , Khairpur. Sindh Abadgar and Matiari.

The balance still stands at Rs1.36 billion against 25 mills, out of total 30 mills.

He said owners of sugar mills had made a commitment that they would pay cane dues by Aug 15. Those unable to pay would have to make payment with an 18 per cent mark-up to growers.

Jamali said that a meeting would be held at the department next week to decide future line of action against mills who failed to make payment by the due date.

Talking about action against defaulters, Jamali said civil cases would be filed against defaulters under Section 26 of the Sugar Factories Control Act.

Powers would also be given to individual cane growers to file cases against defaulters in the high court.

A leading cane grower, Anwar Bacchani, told Dawn that his main dues were against Faran Sugar Mills and Meehan Sugar Mills. Their managements had promised to pay the dues by next week.

Under section 26 of the act, a mill owner could be sentenced to two years jail and Rs200,000 fine or both for non-payment of dues to growers within 15 days of the procurement of cane.

Due to delay in the payment of dues, many growers shifted their crop to cotton and paddy this year, resulting an estimated drop of 40 per cent in cane output this year.

Meanwhile, sugarcane control board, which fixed minimum procurement price for cane for the forthcoming crushing season, has been formed.

The cane commissioner has nominated representatives from the mills and growers on the board and names have been sent to the Sindh government for approval.

The board, headed by the cane commissioner, also has directors of agriculture and industries as its members.

The board is expected to hold its meeting next month to fix the minimum procurement price for sugarcane. The crushing season is expected to start from November.

The minimum cane price fixed for the last season was Rs67 per maund which was reduced to Rs63 per maund at the fag end of the season.