The Sugar Cane Growers Fund (SCGF) has cut the interest rate for growers enrolled in its Green Cane Incentive program from 3.95% to 3.5%, a move the fund says will benefit 797 cane farmers and trim their combined interest burden by about $35,865. SCGF chief executive Raj Sharma announced the reduction on Tuesday, describing it as part of the organisation’s Environment, Social and Governance (ESG) commitments to “give back to the community.”
The Green Cane Incentive was introduced in 2025 and rewards growers who harvest at least 75 percent of their cane green with preferential loan terms. Sharma said the reduced rate takes effect immediately and will run through February next year; growers who again achieve the 75 percent green-harvest threshold this season will keep the lower rate for a further 12 months. The fund has notified all eligible growers by text message, he added.
The 797 growers covered by the cut hold a combined loan portfolio of $7.97 million, representing 20 percent of SCGF’s total $38.91 million loan book. The 0.45 percentage-point reduction in interest—equating to 0.0045 of the portfolio—produces the estimated $35,865 fiscal impact, the fund said. Sharma framed the move as targeted financial relief that also supports the industry’s environmental goals by incentivising green-harvest practices.
SCGF said the interest-rate change is one of several measures through which it is “giving back in excess of $1 million,” including discounted fees and Mortgage Protection Covers. The announcement follows other temporary relief measures the fund has implemented for growers in recent seasons; after a fire at the Rarawai Mill in Ba last year, for example, the SCGF waived loan application and documentation fees for affected Western Division growers to ease immediate cashflow pressures.
The incentive comes amid wider calls from some farmers and industry stakeholders for stronger protections and support across the sector. Earlier coverage documented farmer concerns over market volatility and the demand for governance reforms to prioritise grower welfare. SCGF’s latest initiative aligns with those aims by linking financial assistance directly to sustainable harvesting practices.
Sharma emphasised that the fund places growers’ interests “at the centre of our business,” noting the program’s dual purpose of lowering finance costs and encouraging environmentally preferable harvesting. The SCGF said it will continue to monitor uptake and the financial impact of the rate reduction through the period it is in force.
Leave a comment