The Punjab Cane Commissioner’s audit report for 2024-25 has revealed that sugar mills owe more than Rs3 billion to sugarcane farmers. The report highlights that during the 2023-24 fiscal year, many sugar mills failed to pay farmers on time, violating legal rules.
According to the audit, mill owners did not pay Rs3.0469 billion to growers despite a law requiring payment within 15 days of sugarcane purchase. This delay has caused financial stress for many farmers who depend on timely payments.
The report also exposes that sugar mills bought sugarcane at prices below the government’s fixed rates. This is against pricing regulations and harms farmers by reducing their earnings unfairly.
In total, the outstanding amount owed to sugarcane farmers now exceeds Rs3.05 billion. The Punjab Cane Commissioner shared these findings with the relevant department in October 2024. However, the department did not respond until December 2024, when the audit was completed.
This situation raises concerns about the accountability and financial management of sugar mills. Farmers rely heavily on fair and prompt payments to support their livelihoods.
The Punjab government is expected to take action against sugar mills violating payment and pricing laws. The report aims to ensure that farmers receive what they are legally entitled to and help restore trust in the sugar industry.
Overall, the audit report sheds light on the ongoing issues between sugar mills and farmers. It stresses the need for stronger enforcement of regulations to protect farmers’ rights and stabilize the sugar sector in Punjab.
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