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Sindh directs mills to pay quality premium to cane growers      
      
 
KARACHI (April 01 2004): Although sugar mills in Sindh have failed to pay quality premium for 2002-03 to growers, Sindh government has issued a fresh notification directing the mill owners to pay quality premium for the current year, 2003-04, also.

Mill owners term this notification as discriminatory, saying that no other province has issued this type of notice and it is not known why Sindh government only is insisting on payment of quality premium.

Sources close to the industry contend that recovery percentage of sucrose content, particularly in Lower Sindh, has been very low this year due to a widespread disease of borer in sugarcane.

In these conditions, the payment of quality premium is unjustified.

The payment for last year, running into billions of rupees, is still being avoided by sugar makers in spite of the fact that the government has left no stone unturned throughout the year compelling the mills to make payment.

According to a spokesman of Sindh Sugarcane Growers Association, it is surprising that mill owners are avoiding every notification of the government. The writ of the government must be honoured, he added.

It is learnt that seasonal operation of sugar mills in Sindh will not go beyond April 15 and, by that time, the mill owners may pull down their shutters for the next season. But during the next season sugarcane will hardly be available for mills to crush.

The cultivation of the crop is being avoided this year by growers.


Courtesy Business Recorder           
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