The Minister for Sugar made his intention known in Parliament and to stakeholders in the sugar industry that he wants production of sugar to increase to 1.8 million tonnes in 2024 and 2.0 million tonnes by 2025.
My two other articles in this newspaper raises pertinent questions in the way the industry is operating.
Many questions remain unanswered, however, as a good citizen of our beloved country and apart from being critical of issues affecting the sugar industry, it is also for us as industry advisers to find solutions to the ills of industry.
So let us evaluate the target of 1.8 million set for 2024 harvesting.
Improving production
Government in its 2023 budget has approved a budget of $5million to assist farmers to increase production of sugarcane. According to industry source $1000 per acre is allocated as grant to canefarmer to improve production. The Minister for Sugar has recently announced that $1million has been paid to farmers who have improved their production in the 2023 season compared to the 2022 season. The remaining balance of $4million will be utilised as $1000 per acre grant to improve production. The $1000 grant would assist a farmer to plough unused land for the cultivation of sugarcane. This would include preparing of land, buying seeding, paying labour cost and other associated cost. If all $4million is utilised for this scheme than 4000 acres of more land will be bearing sugarcane by the end of this year. At an average of 35 tonnes per acre production the scheme is expected to increase production by 140,000 tonnes. This increase will not be fully benefitting the 2024 season since only farmers who have done the planting earlier in the season will be able to harvest their new cane in the 2024 season. The remaining will count on the next season. Say for example, hypothetically 50 per cent or 70,000 tonnes will contribute towards the anticipated increase (200,000) to achieve the target of 1.8 million of sugarcane this year. This is far short of reaching the target figure for 2024. For the benefit of doubt, I will allow another 30,000 tonnes for increase by natural means. FSC has already indicated that the recent excessive rain in the cane belt areas would affect cane production if rain water does not evaporate in time. The industry will now rely on good weather for the next four months leading up to the harvesting season to have an increase in production to achieve the target of 1.8 million.
Productivity-based incentive
While Government is providing assistant to farmers who improve productivity by providing grant to plant more cane, assisting manual harvesting farmers with harvesting expenses and subsiding fertiliser cost, there is a lot more to be done to improve productivity in the industry. Table 1 illustrates the anticipated increase in sugarcane production up to 2026 season if Government continuous to provide funding to improve sugar production.
Productivity plan for a farmer
FSC Estate Officers and Sugar Cane Growers Council executive officers need to develop a productive plan with individual farmers who want to access the government grant to improve production. A sample Progressive Productivity Plan for farmer MR X is illustrated below in the table. Name: MR X Current Production: 125 tonnes Land size: 16 acres Land used for Cultivation: 5 acres Vacant Land Available for Cultivation: 5 acres If you study Table 2 than the harvesting and delivery grant is applied progressively based on the farmer meeting the production level from production grant received in the previous year. After three years and at 300 tonnes of harvesting the farmer Mr X is expected to be free from receiving grants. Next article will look at monitoring and evaluation of production and the net effect of the sugar industry in our economy.
•�SAILESH NAIDU is a sugar industry advisor and business consultant. The views expressed in this article are his own and not of this newspaper. Email: btrainer-sconsultants@gmail.com
