Attention is turning to a promising Diwali season for sugarcane farmers following the government’s announcement of a record cane payment of $105.08 per tonne for the 2023 crop. This development is a significant boost for farmers.
According to a statement from the Ministry of Multi-Ethnic Affairs and Sugar Industry, this move underscores the government’s commitment to the sugarcane farming sector. Earlier this year, farmers received $21.75 per tonne in May, resulting in a total payment for the 2023 crop of $101.08 per tonne, marking the highest amount ever recorded.
The government had planned an additional payment of $2.57 per tonne before Diwali but, recognizing the challenges posed by climate change and the need to support the sugar industry, they opted to increase the total payout by an extra $1.43 per tonne. This brings the final payment to $4 per tonne, leading to the historic total of $105.08 per tonne.
Sugar Minister Charan Jeath Singh highlighted that the decision to augment the payment was in response to the severe difficulties farmers have faced due to climate challenges. He acknowledged that enhancing production is a significant hurdle as well.
The minister emphasized the historical importance of the sugar industry, which was once the backbone of the nation’s economy, providing livelihoods for many families and supporting numerous related industries. However, changes in international trade agreements, such as the expiration of preferential prices under the European Union’s Lome Convention, have had a detrimental impact on the industry.
At one point, over 200,000 individuals relied on the sugar sector, but by 2013, the number of active farmers had dwindled to about 12,632, down from 21,000 a decade earlier. The decline is attributed to various factors, including unrenewed land leases, decreasing profits due to rising cultivation, harvesting, and transportation costs, as well as increasing fertilizer expenses.
Despite these challenges, there is optimism that the substantial payout will help revitalize the industry and encourage more farmers to engage in sugarcane cultivation. However, there is a call for government incentives to motivate farmers to increase production.
The industry faces complex issues that require immediate attention. Competing with other sugar-producing nations poses additional challenges, as does the need to address local dynamics, such as transportation and land sales.
Reflections on transportation suggest weighing the benefits of trucking against improving an upgraded railway system. There is also a pressing need to consider the concerns of farmers and landowners alike.
A correspondent, Bharat Morris, raised valid points recently, emphasizing the cycle of needing more sugarcane to produce sugar, which in turn requires more land and farmers. This leads to an overarching question: Is there the political will to enact meaningful change?
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