Sugar Mills Owe Farmers Over Rs3 Billion According To Audit Report

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Sugar Mills Owe Farmers Over Rs3 Billion According To Audit Report (1)

The Punjab Cane Commissioner’s audit report for 2024-25 reveals that sugar mills owe farmers over Rs3 billion. This outstanding amount has raised serious concerns about payment delays and pricing violations.

During the 2023-24 fiscal year, sugar mills failed to pay Rs3.0469 billion to sugarcane farmers. The law requires mills to pay farmers within 15 days of purchase. However, many farmers remain unpaid, causing financial hardship.

The audit also found that sugar mills bought sugarcane at rates lower than government-set prices. This violates pricing regulations designed to protect farmers. The total unpaid amount now exceeds Rs3.05 billion.

Authorities were informed about these issues in October 2024. Yet, the concerned department did not respond until the report’s finalization in December 2024. This delay raises questions about enforcement and accountability.

The audit calls for strict action to ensure sugar mills follow payment rules. It urges the government to monitor the industry closely and hold mill owners responsible for their legal obligations.

Farmers rely heavily on timely payments to manage their expenses. Delays can affect their livelihoods and disrupt the sugarcane supply chain.

The report highlights the need for reforms in the sugar industry. Protecting farmers’ rights and ensuring fair payments should be top priorities.

Experts say stronger oversight is essential to prevent future violations by sugar mills. Transparent processes and regular audits can help restore trust between farmers and mill owners.

In conclusion, the Punjab Cane Commissioner’s audit reveals major challenges in the sugar sector. The government must take swift action to address these issues and safeguard farmers’ interests.


In other related news also read CCP Summons 70 Sugar Mills In Price-Fixing Case, CJP Urged For Probe

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