KARACHI: While dismissing a petition seeking directive to fix sugar cane support price, the Sindh High Court has observed that since the provincial government has not decided to change the minimum cane price fixed in 2022, the old price will continue to remain in the field.

The SHC has also noted that since the federal government has entered into certain financial commitments with the International Monetary Fund (IMF), the Sindh government has not notified minimum price of sugar cane for the crop of 2025-26.

A two-judge regular bench of the SHC comprising Justice Muhammad Saleem Jessar and Justice Nisar Ahmed Bhanbhro further said that as per a statement of the cane commissioner, the quality premium will be paid to the sugar cane suppliers/growers at the end of the crushing season.

Citing the chief secretary of Sindh, agriculture, supply & prices department, cane commissioner and sugar mills as respondents, the Sindh Growers Alliance along with a grower had petitioned the SHC and submitted that a notification was issued in November by the department fixing commencement of the crushing season without first determining and notifying minimum support price and quality premium.

Bench dismisses petition seeking fresh support price

The counsel for the petitioners contended that the provincial government in collusion with sugar mills had deliberately delayed fixing the sugar cane price and commencement of the crushing season causing serious financial prejudice to growers while the crushing season commences on Oct 1 as defined in the law and any deviation therefrom was unlawful.

A provincial law officer along with the counsel for sugar mills questioned the maintainability of the petition and asserted that the subject issue was pertaining to policy and economic regulations and the court cannot substitute the executive discretion nor can it fix prices or devise a pricing mechanism.

The bench in its order said that the Sugar Factories Control Act (SFCA) 1950, has granted discretion to the government to fix minimum price of sugar cane after recommendation of the board for each season and payment of quality premium at the end of the season.

It also said that as per the record, last notification in this regard was issued by the provincial government in November 2022 fixing the minimum price for sugar cane at Rs302 per 40 kilogrammes and premium for growers at the rate of 50 paisa per 40kg for each 0.1 per cent at the end of the crushing season 2022-23.

It further transpired from the statement of the cane commissioner that the issue of fixing sugar cane price for the Season 2025-26 was placed before the provincial cabinet in November, but it deferred the same due to certain commitments made by the federal government with the IMF, it added.

As far as the payment of quality premium is concerned, the bench observed that in terms of Section 16(3) of the SFCA, every occupier of a sugar factory was required to pay quality premium commensurate with every occupier of a sugar factory was required to pay quality premium commensurate with recovery exceeding the base sucrose level of 8.7 per cent per 100kg and accordingly, the statutory requirement will be ensured at the conclusion of current crushing season.

It said the statement filed on behalf of the cane commissioner ensured that quality premium will be paid to the sugar cane suppliers/growers at the end of the season.

“Moreover, from perusal of the sub-section (1) to Section 16 of the SFCA, it is vivid and crystal clear that the fixation of minimum price is at the discretion of the government and the government is required to issue another notification when the minimum price is proposed to be altered. Since the government has not decided to alter the minimum sugarcane price as fixed under earlier notification dated 23.11.2022, therefore, issuance of fresh notification was not required, and the old price shall continue to remain in the field”, it added.

The bench in its order also noted that the petitioners have failed to demonstrate that non-issuance of notification under Section 16 of SFCA about fixing sugar cane price has in any manner hinged upon their fundamental rights or the factories were paying less price of sugar cane in comparison to its cost of production burdening the growers.

Published in Dawn, March 7th, 2026