The Sugar Cane Growers Fund (SCGF) is urging cane farmers to begin harvesting immediately, welcoming Government’s recently announced $5 million fuel subsidy and warning that further delays could increase costs and jeopardise industry targets.
SCGF Chief Executive Officer Raj Sharma said the subsidy directly addresses one of the key concerns raised by growers during consultations held throughout the cane belt.
“Government has its own fiscal constraints, yet it has once again demonstrated its commitment to the sugar industry,” Sharma said.
“We acknowledge Government’s response through this fuel subsidy, which will provide much-needed relief to growers and contractors.”
Sharma said the sugar industry had endured a difficult period, with global sugar prices falling sharply while operating and fuel costs remained high.
“Global sugar prices have fallen significantly and are now almost half of previous levels, while fuel and operating costs are high,” he said.
Despite these pressures, Sharma noted that Government had maintained a guaranteed cane price of $85 per tonne.
He said growers had consistently highlighted two priority issues during consultations: certainty around the guaranteed cane price and assistance with rising fuel costs affecting harvesting and transportation.
Sharma called on the Fund’s more than 4,000 grower-customers to commence harvesting without delay, noting that the peak harvesting period was already underway.
“The industry is facing difficult times, but now is the time for all stakeholders to work together. Peak harvesting period is already underway, and delays will only increase costs for growers, particularly as the rainy season approaches.”
He said uncertainty surrounding the conflict between the United States and Iran meant stakeholders could not afford to take a wait-and-see approach.
“Although fuel prices may ease in the coming months, the ongoing uncertainty arising from the US-Iran conflict means we cannot afford to wait and see, and we all must remain vigilant for harvesting.”
Sharma warned that failure to harvest on time could affect production targets, export commitments and market opportunities.
“Most importantly, it could impact growers’ ability to meet their loan repayment obligations to SCGF.”
The CEO also revealed that approximately $5 million of the Fund’s $37 million loan portfolio relates to growers whose production had fallen below 50 tonnes.
“These accounts are being closely monitored, and the Fund is working with affected growers to address the challenges and support their continued participation in the industry.”
Sharma highlighted a number of initiatives undertaken by the Fund to ease the burden on growers, including reducing lending interest rates from 6 percent to 3.95 percent over the past two years and covering Mortgage Protection Insurance costs.
“SCGF remains committed to supporting growers and the industry in the best possible way. We encourage all growers to begin harvesting and take advantage of the support measures that have been put in place for the industry,” he said.
