HYDERABAD (February 22 2004): Court cases are being lodged against nine sugar mills for defaulting payment of Rs 213,071 to growers for their produce supplied to these mills.

The nine mills include Sanghar, Tharparkar, Habib, Sakrand, Al-Noor, Ranipur, Nao Dero and Khairpur sugar mills.

These mills had been served final notices to clear the growers' outstanding dues by January 30 but following their failure the matter has been taken up in court of law.

According to Cane Commissioner office sources, first case has been filed against the Managing Director and General Manager of Seri Sugar Mills while case against Tharparkar Sugar Mills would be filed within a couple of days.

Meanwhile, Cane Commissioner Nazar Muhammad Baloch has served final notice to 28 sugar mills for payment of quality premium amounting to Rs 1.7 billion to growers.

The so-called drop of Rs 0.50 per kg in sugar price was termed as mill owners' manoeuvring to delay the payment of quality premium on the pretext that they are faced with financial stringency but the ground realities are that the mill owners are increasing their assets.

The Seri mill owners have recently purchased Fauji Sugar Mills, Tando Muhammad Khan, while Kazi Amjad has also purchased Khoski Sugar Mills besides Bawani and Al-Asif, and Mirza also added another mill, which contradicts the plea that they are not earning reasonable profit.

The growers demanded that the Sugar Factory Act should be amended under which millers' accounts should be audited and they should not be allowed lifting of the produce unless payment to growers is made.

Meanwhile, field reports indicate that the plantation of sugarcane in the province has dropped by 20 to 25 percent on account of delay in crushing season and poor availability of water which will create a shortfall in cane production next year.

These reports further indicate that the shortfall would help the mill owners to disposed of their surplus stock.

According to statistic of Cane Commissioner office, so far 9 million tonnes sugarcane has been crushed, while another 5 million tonnes is still in the fields.

There are reports that sugar mills are purchasing sugarcane at the rate of Rs 36, against the state set price of Rs 41, through the middleman.

The growers organisations are reported to have decided to launch campaign against sugar mills for recovery of quality premium throughout the province.

Courtesy Business Recorder