Pakistan : Sugar mills in Punjab fail to meet deadline to begin crushing
Punjab farmers are alarmed as most sugar mills missed the crushing deadline, triggering a Rs1 million-per-day fine. Only a handful of mills have begun operations. Growers demand higher cane prices amid flood losses and delayed payments. Authorities promise strict action, while farmers warn of protests if crushing and payments are not ensured soon.
Farmers across Punjab have voiced strong concerns after most sugar mills failed to begin crushing despite the government deadline.
The Punjab Cane Commissioner has announced a penalty of Rs1 million per day for every mill that does not commence operations.
Sugar crushing at the province’s 41 mills was officially scheduled to start on Saturday, November 15. However, leaders of farmers’ bodies told Minute Mirror that only around 10 mills have begun proper crushing so far.
“Sugar mill owners intentionally delay operations and wait for a rush of supply so they can purchase sugarcane at rates they decide,” Pakistan Kissan Ittehad President Umair Masood said.
Farmers have demanded Rs600 per 40 kg for sugarcane, while the government’s support price remains Rs400 per 40 kg. This year’s severe floods in Punjab have also damaged sugarcane crops, raising fears of a potential sugar shortage in the coming months.
The Punjab Cane Commissioner said an action plan has been finalized against mills failing to commence crushing. “We will impose a penalty of Rs1 million per day on factories that do not begin operations,” he said, adding that 27 mills have started crushing while the remaining 14 will be inspected by tomorrow. Action will be taken under the relevant laws against those missing the deadline.
While farmers complain of persistent delays in receiving payments, the Cane Commissioner also pledged strict enforcement of timely payments.
Under the Sugar Factories Control Act, mills are required to pay farmers within 15 days of issuing the Cane Purchase Receipt (CPR). A delay carries an 11 percent per day fine, but farmers say they often wait months or even years for full payment.
“We will hold protest demonstrations in front of sugar mills if they did not start crushing in next couple of days and pay us timely,” said the leader of PKI.
Earlier, on November 11, the Punjab Cane Commissioner had directed all mills to begin crushing from November 15.
The Sugar Mills Association (SMA) recently warned the government about rising sugar prices, arguing that unnecessary import restrictions and closure of Federal Board of Revenue (FBR) portals for sugar clearance disrupted the supply chain and pushed prices upward. The SMA said the industry was neither responsible for nor benefiting from the price hike.
Meanwhile, the Regional Sugar Mills Association (Punjab) has announced that crushing will begin from November 28.
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Source : Minute Mirror
