In an unexpected development, the Sugar Cane Growers Council (SCGC) has urged the government to implement a special cane payment of at least $8.00 per ton for the upcoming 2024 season crop. This request comes as farmers expressed concerns over the recent third cane payment of $12.22 per ton, which was markedly lower than last year’s payment of $23.14 per ton, and has negatively impacted their financial status.
SCGC CEO Vimal Dutt noted that this call for a special payment is unprecedented, reflecting the growing concerns among growers regarding their financial stability. He indicated that the reduced third payment has resulted in a budget shortfall for many farmers, as the payment received has not sufficed to cover their operational costs. The SCGC represents a portfolio of 10,231 active growers who harvested 1,331,922 tonnes of sugarcane this season.
Dutt highlighted that, while the outlook for the 2025 crop appears more promising compared to previous years, there is an immediate need for financial relief to assist growers ahead of the standard fourth cane payment due at the end of May. He emphasized that providing this special payment could aid in easing the financial burdens and enable farmers to focus on the next harvesting season without the weight of existing debts.
This situation mirrors sentiments expressed by various stakeholders in the sugar industry, who have been vocal about the inadequate support amid rising costs. Recent articles have also noted that despite the government’s efforts to boost financial assistance, many sugarcane producers are still feeling the pressure from economic challenges, including increased production costs exacerbated by fluctuating market conditions.
Amid these challenges, Dutt remains hopeful for a positive response from the government, emphasizing the importance of timely assistance to support farmers who are navigating a tough financial landscape. Ultimately, such measures could promote stability and resilience for the sugarcane industry as it adapts to evolving economic and environmental demands.
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