The extended Punjab Sugar Factories (Control) (Amended) Ordinance 2020, promulgated by the Punjab government on September 24, 2020, to protect the rights of sugarcane growers, lapsed on Tuesday as it could not be converted into a law by the Punjab government.
Local media reports state the ordinance amended the previous law to penalise millers for delaying payment to growers for more than 15 days after the purchase of crop or illegally deducting their dues, with violators to serve three years in jail and pay a fine up to Rs5 million.
Further, sugar mills were required to issue a formal receipt at the time of receiving a crop and transfer dues to the farmer’s account.
Similarly, issuing informal receipts to farmers on receiving their crop was made a crime and sugar mill agents were ordered to issue formal receipts.
