Punjab government withholds sugar mill’s crushing licence over unpaid farmer dues

Jalandhar, Punjab: The Punjab government has put on hold the crushing licence of the Phagwara-based Golden Sandhar sugar mill, earlier known as Wahid-Sandhar Sugars Limited, for the ongoing season after it failed to clear Rs. 27.74 crore in pending payments owed to farmers from the 2021–22 crushing season, reported Hindustan Times.

The mill was earlier owned by Shiromani Akali Dal leader Jarnail Singh Wahid and UK-based NRI Sukhbir Singh Sandhar, with Wahid serving as managing director until 2024. Since then, its operations have been handled by Rana Sugar Mills Limited.

As per the news report, a meeting was held on Monday involving district administration officials, the sugarcane commissioner, farmer representatives and the mill management to review the issue of unpaid dues. Kapurthala deputy commissioner Amit Kumar Panchal said the management has been asked to submit a clear plan for settling the arrears by December 25. He added that the matter will be reviewed again on December 26, but the final call on the licence will be taken by the state government.

According to the current management, the mill had built up total liabilities of about Rs. 40.71 crore over four years under the previous owners.The group has already paid nearly Rs. 16 crore after taking charge. He blamed delays in clearing the remaining amount on the government, pointing to problems in selling properties attached to the former owners because of high valuations fixed by the price fixation committee, the news report further added.

He said farmers are facing added costs as the licence suspension has forced them to transport their cane to far-off mills. In 2022, the Kapurthala district administration had attached several properties linked to the mill and set up a seven-member committee to decide their sale value.

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