Sugar growers denied payments by mills

Published April 24, 2008

OKARA, April 23: Growers are facing an acute financial crisis owing to non-payment by three sugar millers and they have sought government intervention.

Three millers -- Baba Farid, Abdullah and Channar sugar mills – had started crushing in the third and last week of November 2007.

They ended the crushing in the first week of April 2008. The millers have not been making payments to scores of growers since Dec 20, 2007. Out of 120-day crushing season, the growers have received their 25-day payment.

Besides this farmers are totally dissatisfied over the weighing scales of the millers who are making heavy deductions in weight on the pretext of non-approved varieties of sugarcane.

The helpless growers have been forced to get their payments through middlemen after deduction of Rs4 to Rs8 per 40kg on the cash payment receipts (CPRs).

According to Sugarcane Factories Act, millers are legally bound to pay growers within 15 days after the crushing season. In case of delay, the millers will have to pay 11 per cent penalty to growers.

Farmers have urged the Punjab sugarcane commissioner to look into the matter and ensure payment to them otherwise they will have no other option except to abandon cane cultivation.