Corporate Social Responsibility - Sustainable Development Policy ...

Studying the Sugar Production Process in Pakistanthe market and only then sell the sugar otherwise they hold the stock till themarket rate rises. The managers are aware of the negative consequences thatmay burden a farmer due to delayed payments leading to discouragement ofgrowers hence decreasing acreage of sugarcane but they argue that the mill ishelpless and cannot facilitate a faster payment mode. Some managers assertedthat the Government should execute a mechanism which will aid the mill gainliquidity for the sugar stock in turn the mill will grant the growers punctualpayment. PSMA officer explained that the delay in payments occurs when thereis a huge stock of sugar sitting at the mills waiting to be sold. He suggested thatthe Government needs to give permission to export so that payments will bereleased to farmers moreover the Government should authorize banks so thatthey should give loan to the farmer with lower rates of interest. There are only 5or 6 mills that have payment problem they release payment to farmers afterselling their sugar which is only due to their rigid financial problems.After weighing the grower is issued the cane procurement receipt (CPR), whichcarries written detail of weight of sugarcane and the payable amount afterdeduction of sugarcane Cess. There are thousands of farmers witnessed runningfrom pillar to post in government offices for help to receive their outstandingamounts from mills. It was further noted that the delay in payment by the millsmakes news and officials and politicians issue statements but the core situationremains always the same. 36VIII. Ensuring Supply of SugarcaneThere seemed to be a division in view regarding the “indent”; the indent is themost sought-after piece of paper. Favors are sought from MNAs and MPAs andbribes are offered to factory administration to get the indent. 37 While some farmersfound the process fair others protested that they have to work hard procuringthe indent from the mill, when the mill realizes that the grower is desperate to getan indent they misuse the situation to force the farmer to agree to their terms andconditions (usually ripping the farmer’s gains). All managers found the practiceof giving out an indent very essential for efficient and smooth production ofsugar. Some further claimed that this practice is followed for maximum utilizationof sucrose content in the sugarcane. The moment the sugarcane crop is cut the36Farmer Report, Punjab Lok Sujag. October 200837Farmer Report, Punjab Lok Sujag. October 2008y 37