The Government has moved to reassure sugarcane farmers by guaranteeing a cane payment of $85 per tonne for the 2026 crop season amid rising fuel prices and increasing harvesting and transportation costs.
In a statement, Government acknowledged that the forecast cane price of $57.40 per tonne announced by the Sugar Industry Tribunal under the Master Award was insufficient to adequately support farmers facing escalating production costs.
The forecast price is based on prevailing world market prices for raw sugar.
To bridge the gap, Government has agreed to provide a top-up payment.
“The Government has agreed to provide a top-up payment to ensure farmers receive a guaranteed cane price of $85.00 per tonne during the 2026 crop season,” the statement said.
“This guaranteed payment comprises the forecast price of $57.40 per tonne together with a Government-funded top-up.”
The announcement comes after concerns were raised by industry stakeholders over the impact of higher fuel costs on harvesting and transportation expenses, with farmers warning that the delivery payment based solely on the forecast price would be inadequate.
While reaffirming its commitment to the sugar industry, Government also expressed concern over the continued decline in sugarcane production despite substantial assistance provided to farmers and the sector.
Government highlighted a range of support measures already in place, including cane planting grants, fertiliser and weedicide subsidies, manual harvesting payments, farmer incentive programmes, cane access road improvements, lease renewal assistance and top-up payments that exceeded $36 million for the 2025 crop season.
“Given these significant investments, Government is calling on all stakeholders—including sugar mills, cane cutters, lorry operators, landowners, and sugarcane farmers—to strengthen their commitment to improving productivity and ensuring the long-term sustainability of the industry.”
Government acknowledged that rising fuel and fertiliser prices were beyond the control of farmers and encouraged growers to diversify into other crops and livestock farming to supplement household income and strengthen food security.
“As such, farmers are encouraged to diversify into other crops and livestock farming to supplement household income, strengthen food security, and reduce vulnerability to external economic shocks.”
Government said it remains firmly committed to the long-term sustainability of the sugar industry and wished all stakeholders a successful and productive 2026 crushing season.
