HYDERABAD: The Sindh High Court’s Hyderabad circuit bench comprising Justice Shahnawaz Tariq and Justice Mahmood A. Khan on Tuesday heard petitions filed by the Sindh Abadgar Board (SAB) and Sindh Abadgar Ittehad (SAI) regarding fixing of sugar cane procurement price by the provincial government. The next date of hearing was fixed for Oct 4.

The counsel for sugar mills owners argued that in view of successive rulings by the Supreme Court, the high court might not be competent enough to intervene in the policy matters. “It is only in selective cases where the SHC could intervene,” he added.

Barrister Shabbir Shah cited the Habib Bank Limited privatisation case in which detailed observations were given by the apex court. He prayed to the bench to adjourn growers’ petition sine die in view of the fact that the apex court was seized with the matter.

He questioned the petitioner parties’ plea on maintainability grounds and was able to convince the bench that the maintainability point should be decided first.

The counsel opposed the petitioners’ contention that a rate suitable to them should be fixed as the Sugar Factories Control Act, 1950 amended in 2009 don’t make anything binding on government.

“Refined sugar’s price is to be fixed first and only then the rate of sugar cane could be fixed but government compels sugar millers to buy sugar cane at a specific rate in violation of Article 18,” he argued.

He also cited the notification of Rs160/40kg -- part of the high court’s order passed by its principal seat -- and said it mentioned a subsidy of Rs12/40kg for growers.

At that time, he said, millers did not agree to the rate of Rs182/40kg as was notified and it did not hold field now after the high court observed that till the matter was decided by the apex court, the settlement reached between parties would continue.

The counsel insisted that high court had got no jurisdiction to decide rate on demand by petitioners, who were encroaching upon the Sindh Assembly’s jurisdiction.

Advocates Ayatullah Khowaja and Ali Palh, representing SAB and SAI, respectively, also briefly argued as court gave them time to argue on Oct 4 on the maintainability ground. Advocate Khojwaja contended that everything, right from labourers’ wages to the cost of production, had increased but millers wanted to set a precedent by seeking a downward revision of sugar cane procurement price. He challenged the Sindh government to come up with just one plausible reason for a downward revision of price i.e. 172/40kg in 2015-16 from Rs182/40kg in 2024-15.

Blosch Ahmed Junejo who is representing Sindh Chamber of Agriculture would argue his case on Oct 4.

Published in Dawn September 28th, 2016