Karachi - Sindh government on Wednesday released Rs3.9 billion to 28 sugar mills operating in the province in order to fulfill its promise of Rs12 subsidy per 40 kg to sugarcane growers.

This decision was taken in a meeting held here today with Sindh Chief Minister in the chair. Chief Secretary Siddiqui Memon, Principal Secretary to CM Alamudin Bullo, Special Secretary Finance attended the meeting.

The Chief Minister reviewing his decision taken in his meetings with growers and sugar mill owners asked the Chief Secretary about release of Rs3.90 billion subsidy to growers. The chief Secretary replied that CM has approved the summary and funds have been released.

It may be noted that Sindh government had notified sugarcane price at Rs182 per 40 kg.

The millers did not accept the government decision and started paying Rs155 rate to growers.

The Chief Minister held a meeting with millers and they agreed to increase Rs5 per 40 kg. It means they agreed to pay Rs160/40 kg.

The Chief Minister then held a meeting with growers and urged them to accept Rs172 rate. The millers would pay them Rs160 and remaining amount of Rs12 Sindh government would give them as subsidy.

The millers accepted the decision and said that the case was pending in Supreme Court. If the court decides payment of Rs182 per maund then the millers would have to pay differential amount of Rs10.

The Sindh government fulfilling its commitment has released Rs3.90 billion to the sugar mill owners as was proposed by growers’ representatives, for onward payment to sugarcane growers.