LAHORE: Soon after being empowered under the Sugar Factories Control Ordinance promulgated by the Punjab governor last week, the cane commissioner has sprung into action and directed the sugar millers to pay dues of growers through formal bank channels/accounts.

A circular issued by Cane Commissioner Muhammad Zaman Wattoo a day ago (Sept 29) to all the sugar mills operating in the province informs them that as per amended law it is mandatory to pay the growers directly through their respective bank accounts.

It warns them that from now on cash payments will be considered an offence warranting penalty.

“Any cash payments will be considered an offence after the promulgation of the Ordinance on Sept 24. Penalty of the offence of cash payment is provided in the amended section 21 of the aforementioned Act.”

The Section 21 of the ordinance prescribes “imprisonment for a term which may extend to three years or with fine which may extend to Rs5 million per day but shall not be less than Rs1 million per day or with both (jail term and fine).”

It further says that “the fine shall not be less than Rs5 million per day in case of a repeated offence.”

The commissioner cautions the millers that the amended law banning cash payments is not just applicable on future payments rather it encompasses the payments overdue for the previous crushing seasons.

The circular, however, clarifies, that the restriction of direct payment into bank account shall not be applicable on the sums/amounts declared as arrears of land revenue, for payment of which deputy commissioners/additional cane commissioners would direct the mills under the provisions of relevant laws/rules, including payment through “payee’s account only” bank draft/pay order in the name of the grower concerned.

The ordinance also covers the agents hired by the millers as middlemen for purchasing cane from growers. It says: “If the occupier of a factory enters into an agreement with a purchasing agent for purchase of cane, the purchasing agent shall issue Cane Purchase Receipt (CPR) of the sugar factory for purchase of Cane from Cane-grower and shall be liable to pay to the Cane-grower for the Cane purchased from him through a bank as may be prescribed.”

Published in Dawn, October 1st, 2020