The Punjab government has sealed the Golden Sandhar Sugar Mill in Phagwara for failing to clear Rs 27.74 crore in sugarcane payments to farmers for the 2021-22 crushing season, Food, Civil Supplies and Consumer Affairs Minister Lal Chand Kataruchak said on Sunday.
Kataruchak said the government would not remain a silent spectator if farmers are denied their hard-earned money, warning that no mill would be allowed to exploit the farmers or operate in violation of the law.
“The Phagwara administration has sealed the Golden Sandhar Sugar Mill in Phagwara, currently managed by the Rana Group, for failing to clear Rs 27.74 crore in outstanding sugarcane payments owed to farmers for the 2021-22 crushing season,” the minister said in a statement.
The farmers have been waiting for their hard-earned money for a long time, resulting in considerable resentment among them, he said.
“Farmers work tirelessly to cultivate sugarcane and supply their produce to the mills. It is the responsibility of the mill management to ensure timely payment for the crops they procure.
“If a mill purchases their produce and does not pay them, the government cannot remain a silent spectator. The mill has been sealed because it failed to clear farmers' dues. I urge the mill management to immediately release the outstanding payments running into crores of rupees,” Kataruchak said.
Government reiterates support for farmers
The minister also said the Bhagwant Mann government has always stood with the farmers and taken important decisions to safeguard their interests.
“Be it stubble management, paddy and wheat procurement or the supply of canal water, the government has taken several historic decisions to support the farming community,” he said.
Mill allegedly operating without valid licence
On the decision to shut the Phagwara mill, Kataruchak said complaints were also received that it was operating without a valid licence.
“Operating a sugar mill without the requisite licence is a violation of law. No mill will be allowed to function in Punjab without fulfilling the necessary legal requirements,” the minister said.