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Friday, December 05, 2025  
13 Jumada Al-Akhirah 1447  

Audit report: Sugar mills fail to pay over Rs3 billion to farmers

Owners also bought cane below government rate; department failed to respond to audit findings
A representational image. File
A representational image. File

The Auditor General of Pakistan’s latest audit report has laid bare the alleged malpractices of the so-called “sugar mafia,” revealing that sugar mill owners withheld more than Rs3.046 billion from sugarcane farmers during the fiscal year 2023-24.

According to the report, the law requires mills to pay farmers within 15 days of purchasing sugarcane.

However, in addition to delayed or withheld payments, mill owners were also found to have purchased cane at rates lower than the government’s fixed price.

The revelations surfaced during an audit of the Punjab Cane Commissioner’s office.

The audit team informed the relevant department of these findings in October 2024, but no response was received until the audit report was finalised in December 2024.

The report underscores that the failure to make timely payments and the purchase of cane at undercut prices violated both legal provisions and farmers’ rights, calling for strict action against those responsible.

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sugar

auditor general

Punjab Cane Commissioner