ISLAMABAD (March 25 2004): Pakistan Sugar Mills Association (PSMA) has sought federal government's intervention against Sindh Cane Commissioner's warning to the millers that they would be arrested under Sugar Factories Act/ Rules 1950, if could not ensure payments to the growers within a week.

The PSMA has taken up the matter with the Minister of Industries and Production, Liaquat Ali Jatoi saying that Sindh Cane Commissioner was abusing his powers since the Act referred for the action was obsolete since 1998.

PSMA Chairman, Iskander M Khan has informed the minister through a letter that Cane Commissioner Sindh was threatening sugar millers of arrest under the law, which has no legal status over the years.

He added that with denationalisation of sugar policy and abolishment of sugarcane zones, Sugar Factories Act/ Rules 1950, had gone obsolete and none of the officials including Cane Commissioner could make use of it anymore.

He said "We register our strong protest over Sindh Cane Commissioner's unlawful threat to the sugar millers of the province and request you (the minister) to immediately intervene to protect the millers from high-handedness of the Cane Commissioner.

The PSMA believes that the threat emanating from the Cane Commissioner office was complete negation of their constitutional rights of protection and freedom of trade activities."

The PSMA has also convened a meeting of its executive body to review the situation arising out of Sindh Cane Commissioner's threat to their millers in the province.

A letter issued from the office of the Cane Commissioner Sindh, Hyderabad in the name of Chief Executive/ Managing Director Sindh Abadgar Sugar Mills, referring payment position of cane price for crushing season 2003-04 said, "As required under Rules No 14 (ii) of Sugar Factories Control Act/ Rules 1950, the occupier shall make payments for cane at purchasing centres within one week and in case of failure, mark up at the rate of Rs 18.5 percent per annum is payable."

The letter warned the millers that action would be taken against them under the law if they failed to comply with the provision of the Rule No 14 (ii) restricting them to ensure payments to the growers within a week.

Courtesy Business Recorder