Giving the background, the sources said, the federal cabinet in its meeting held on February 01, 2012 had decided that to ensure timely payments to the sugarcane growers, Advisor to Prime Minister on Law along with Secretaries of Finance and Industries will examine the issue of feasibility of the CPR (Cane Purchase Receipt) mechanism to be converted into cheques in consultation with the stakeholders ie, sugarcane growers/owners etc) and formulate recommendations.
A meeting of stakeholders was convened in the Ministry of Industries and Production on July 16, 2012. The meeting finalised the following recommendations: (i) sugarcane growers be paid by the sugar mills through cheques with attached uniform pattern of CPR showing rate and quantity;(ii) Provincial Sugarcane Commissioners to ensure inclusion of quantity and price in CPR. In case of any problem they will seek assistance and support from DCOs.
Ministry of Finance, Ministry of National Food Security and Research, Federal Board of Revenue (FBR), State Bank of Pakistan, Cane Commissioners of Punjab, KPK, Sindh and Kissan Board of Pakistan agreed to the proposal.
However, Ministry of Law and Justice was of the view that the CPR template developed by the Ministry of Industries and Production is not a dependable document and will open a floodgate of litigation, indicating disagreement with the proposal. Likewise, Pakistan Sugar Mills Association (PSMA) also expressed its disagreement to the proposal.
Ministry of Industries and Production, in its summary argued that as per direction of the PM office, it has consulted all stakeholders but serious reservations have been shown by the Ministry of Law and PSMA. The Ministry further stated that due to opposing viewpoint of PSMA as well as Ministry of Law and Justice, CPR mechanism to be converted into cheques could not be agreed upon and implemented as per decision of the Cabinet.
Ministry of Industries and Production, sources said, brought to the notice of PM office which advised to bring it into the notice of Cabinet. The Ministry, in its summary to be considered by the federal cabinet has stated that it is hard to reach a unanimous and undisputed mechanism of converting CPR into a cheque, recommending that implementation of Cabinet decision may be stopped.