Sargodha region’s sugar mills emerge biggest defaulters of farmers

LAHORE: As many as seven sugar mills in Sargodha region out of 34 emerge as biggest defaulters of sugarcane growers, owing Rs 1.084 billion out of total outstanding amount of Rs1.415 billion since 2017 in an ongoing investigation being conducted by Anti-Corruption Establishment (ACE).

A senior office-bearer of Pakistan Sugar Mills Association (PSMA) claimed on the condition of anonymity that the money which was not paid to sugarcane growers belonged to three bankrupt sugar mills only. He further insisted that all sugar mills have cleared payments to sugarcane growers. He also said the sugarcane commissioner has given a clearance certificate to all the sugar mills. The respective mill owners will submit their reply to the Anti-Corruption Establishment, he added.

According to documents available with The News, Rs310.89 million were not paid to sugarcane growers by Al Moiz Industries, making it the biggest defaulters of farmers’ money in the province as per data collected by ACE till September 22, 2020. It is assessed that among other defaulters mills of Sargodha region, as many as Rs279.18 million were not paid by Noon Sugar Mills, Rs171.15 million not paid by Darya Khan Sugar Mills, Rs168.62 million not paid by Popular Sugar Mills and Rs105.43 million were not paid by Koh-e-Noor Sugar Mills.

Among the remaining biggest defaulters of farmers’ money, Brothers Sugar Mill situated in Lahore region did not pay Rs196.85 million to sugarcane growers, Rs68.73 million were not paid by Layyah Sugar Mills (DG Khan region), Rs49.07 million not paid by Al Arabia Sugar Mills (Sargodha region), Rs26.67 million not paid by Sheikhoo Sugar Mills (DG Khan region), Rs11.08 million not paid by Hamza Sugar Mills (Bahawalpur region), Rs11.20 million not paid by Adam Sugar Mills (Bahawalpur region), Rs4.49 million not paid by Haseeb Waqas Sugar Mills (DG Khan region), Rs4.30 million not paid by Rehman Hajran Sugar Mills (DG Khan region), Rs2.01 million not paid by Fatima Sugar Mills (DG Khan region), Rs1.61 million were not received by Dehrki Sugar Mills (Bahawalpur region), Rs1.45 million not paid by Rahim Yar Khan Sugar Mills (Bahawalpur region) and Rs1.31 million not paid by Ashraf Sugar Mills (Bahawalpur region).

Anti-Corruption Department (ACE) Punjab has issued warning to chief executive officers/owners of sugar mills to release billions of rupees to sugarcane growers otherwise action would be taken against them, The News learnt. As per a senior official of the department, as investigation against sugar mills is continuing, the defaulted amount can be as high as Rs14 billion with data or more mills being investigated.

ACE added that data collected so far is crossed check with the office of the cane commissioner Punjab. Apart from Rs1.415 billion unpaid paid amount, some Rs3 billion has come to forth by ACE in a similar investigation against the sugar mill owners. DG Gohar Nafees has directed all the regional directors working under ACE to expedite the investigation for a speedy disbursement of amount to the aggrieved farmers, terming them the worst exploited segment of farmers’ community as a whole. In an unprecedented move, the provincial Anti-Corruption Department got data directly from growers about their grievances against sugar mills on a daily basis.

According to data available with The News, ACE so far received 2972 complaints including less payment, less weight and non-payment by sugar mills across Punjab. In Sargodha region, 1800 complaints including less payment, less weight, and non-payment of against sugar mills were received. In Faisalabad region, 333 similar sets of complaints against Sugar mills were received by ACE. In DG Khan Region, 196 complaints against Sugar mills were received.

In the Multan region, 30 similar complaints so far against sugar mills were received by ACE. In Sahiwal region, 12 complaints against sugar mills were received by ACE. In Gujranwala region, 67 complaints were received against sugar mills. In Bahawalpur region, 39 complaints were received against sugar mills. In Lahore region-B, 495 complaints against one sugar mills was received by ACE.

According to Abdul Salam Arif, ACE Director Vigilance, if the mills owners don’t pay money to sugarcane growers, their mills would be sealed. Additionally, action would be taken against cane commissioner office, deputy commissioners as well on any complacency in this connection. It is the duty of officials including DCs concerned to ensure payment after 15 days of sugarcane supply.

Zaman Wattoo Cane Commissioner Punjab talking to this correspondent said sugar mills owners are bound to pay money to the growers but many of them failed to do so. If they delay the amount, the owners will pay 15 percent mark-up or interest rate to the sugarcane growers. We have received countless complaints against sugar mills across the province. According to him, Rs240 million have been deposited by Hamza Sugar Mills alone.

Talking about the legal remedies available with the department, Wattoo shared that in case of violation of the law concerned by sugar mills owners, they are tried under ineffective law; FIR is registered by the order of magistrate. This offence is bailable, said the cane commissioner, adding in this way they cannot be arrested.