Sugar mills owe over Rs3 billion to farmers
File Photo
File Photo
(Web Desk): An official audit reveals that sugar mills in Punjab still owe over Rs3 billion to sugarcane farmers, with payments delayed for months after the crop season ended in violation of legal timelines.

A recent audit by the Punjab Cane Commissioner for 2024-25 has revealed that sugar mills across the province still owe farmers a massive Rs3.05 billion for sugarcane purchased during the 2023-24 crushing season.

Under the law, mill owners are required to pay farmers within 15 days of purchase, but many have failed to meet this deadline. The report also found that some mills bought sugarcane at rates lower than the government’s official support price, directly violating pricing regulations.

The audit team submitted these findings to the relevant department in October 2024, but no official response was received until December, when the audit was finally completed.

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This delay in payments has left many farmers frustrated, especially those who rely on timely earnings to prepare for the next crop cycle and cover daily expenses.

Despite repeated complaints from grower associations, payment delays and price undercutting continue putting additional strain on small-scale farmers who are already dealing with rising input costs.

This isn’t the first time sugar mills in Punjab have faced criticism. Back in 2023, multiple mills were investigated for providing false crushing data and delaying payments.

At the time, the provincial government vowed to crack down on such violations under the Sugar Factories (Control) Act, including imposing penalties and even shutting down mills that failed to follow the rules. Yet, for many farmers, not much has changed.

While some action was taken, including temporary shutdowns of a few mills, most of the owed money remained unpaid. Farmer unions have repeatedly staged protests, demanding quicker payments and better price enforcement, but with little long-term impact so far.