Cane payment swallowed by debt, says Viam Pillay

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Opposition MP Viam Pillay – SUPPLIED

Opposition MP Viam Pillay says the latest cane payment increase will bring little real relief to farmers because most of the money will immediately go towards clearing outstanding debts ahead of the new harvesting season.

The fourth cane payment was recently increased to $12.84 per tonne, up from the earlier $6.77 baseline rate, lifting the running total for growers to $80.88 per tonne.

While welcoming the increase, Pillay said many farming families remained under severe financial strain and were struggling to recover from losses suffered during the previous season.

“The fourth cane payment to $12.84 per tonne is a welcome change from the $6.77 baseline. However, we must remain realistic,” he said.

According to Pillay, the current total payment still falls short of what was promised to cane farmers.

“This brings the running total to $80.88 per tonne, which still falls short of the promised $85 guaranteed price, let alone the $110 per tonne price that was promised during the last election,” he said.

Pillay said the timing of the payout was particularly difficult for growers, with many preparing for harvest while carrying unpaid bills and loan repayments from previous seasons.

“Arriving just days before the harvest, this payout will instantly be swallowed by past debts, leaving farming families with very little cash flow to sustain households and fund upcoming field operations,” he said.

He claimed farmers were also continuing to suffer financially from left-over stand-over cane from last season, which had caused heavy losses across the industry.

“To make matters worse, while growers are drowning under massive losses from last season’s left-over stand-over cane, the Ministry and the Government have completely ignored their own promised incentive schemes,” Pillay said.

Among the concerns raised were the delayed $5 productivity bonus and the $3 manual harvesting bonus, both of which had been promoted as support measures for growers.

Pillay questioned why those incentives had still not been paid despite repeated commitments from the Coalition Government.

“The Coalition Government made these commitments, so the question must be asked directly: when are our farmers actually going to get this money?” he asked.

His comments come as the sugar industry prepares for the 2026 crushing season amid ongoing concerns over declining production, labour shortages, rising operational costs and uncertainty surrounding long-term sustainability in the sector.