Sugar millers to pay Punjab farmers 11pc markup upon delay in payments

LAHORE: Cane Commissioner of Punjab has announced Thursday the government’s step towards eradicating farmer exploitation as sugar millers will pay an 11 per cent mark up to farmers upon delay or deferment on payments, ARY News reported.

The decision came following the pleas by sugarcane growers to Punjab government seeking redressal of their long-standing grievances caused by sugar millers.

Now the millers who delay the payments to sugarcane growers by 15 days from the delivery date will have to pay 11pc on the overall payment as a markup as to protect and compensate farmers.

Punjab Cane Commissioner Muhammad Zaman Wattoo announcing the development said this step will put an end to farmer exploitation and will ensure them payments of their harvest.

Wattoo said it will instill the habit of timely paying in millers and encourage farmers.

READ: Cane crushing season: Punjab sets Rs200 per maund as minimum price

Earlier last month on the eve of cane crushing season, the government decided minimum price for a maund of sugarcane to be Rs200.

It was when the crushing season was to formally begin across the districts of South Punjab by for the current year.

Pertinent to note that the government of Punjab mandated the sugar millers to carry out their transactions to sugarcane growers via banks in order to avoid complications that may lead to exploitation of the farmers.

Earlier on October, apparently in its bid to control the sugar crisis and exploitation of sugarcane farmers, the provincial government has amended the Sugar Factories Control Act 1950 necessitating recorded transactions.