Audit Finds Sugar Mills Owe Farmers Over Rs3 Billion

An audit report from the Punjab Cane Commissioner for 2024-25 has revealed that sugar mill owners collectively owe farmers more than Rs3 billion in unpaid dues.

The findings indicate that during the 2023-24 fiscal year, mill owners failed to clear payments amounting to Rs3.0469 billion, despite laws requiring them to settle the amount within 15 days of purchase.

The audit also uncovered that several mills purchased sugarcane at prices lower than the government’s fixed rates, directly violating official pricing regulations.

This practice not only reduced farmers’ earnings but also breached legal safeguards designed to protect growers from exploitation.

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As per the report, the total outstanding amount now exceeds Rs3.05 billion. The audit noted that the issue was flagged to the concerned department in October 2024.

However, no action or formal response was recorded until December 2024, when the audit was completed.

The findings have raised concerns over enforcement of payment rules in the sugar industry, which has faced repeated allegations of delayed payments and unfair pricing.

Farmers have long complained about financial strain caused by payment delays, which affect their ability to invest in the next crop cycle.