Lahore: Punjab government has initiated action against the sugar mills defaulting payment of sugarcane farmers which amounts to Rs 8.42 billion.
Zaman Wattoo, Cane Commissioner, Punjab has issued show cause notices to the sugar mills for non-payment of the cane dues. RYK Sugar Mills is the biggest defaulter in the state.
The notices have been issued to RYK Sugar Mills Ltd, District Rahimyar Khan under Section 13-A of the Punjab Sugar Factories Act, 1950 stating that the mill owes dues worth Rs 3.923 billion to the cane farmers.
The mill administration has been asked to submit a reply to the notices within two days.
The provincial government has issued notices to other sugar mills over failure to clear cane dues. The Cane Commissioner has stated that action will be initiated against these sugar mills as per law.