[Photo: FILE]
The Government has ruled out increasing the guaranteed cane price to $110 per tonne, saying the move would place further pressure on public finances.
Minister for Sugar Tomasi Tunabuna says while he understands the challenges farmers are facing with rising production costs, increasing the guaranteed price is not financially sustainable at this stage.
According to the Minister, the Government already provides significant support to farmers through fuel assistance, fertilizer subsidies, cane access road funding, and other industry programmes.
“With the current world market price, the government will be paying more than $40 million as top-up alone. If they want to increase that to $110, government will have to pay more than $18 million, almost close to the $97 million the whole ministry of sugar is being provided for. So as I’ve said, I’m not going to easily accept the need to increase to $110, because I will have to reconsider all other assistance that are given for the farmers in different forms.”
Tunabuna says the Government is already expected to spend more than $40 million in top-up payments to maintain the guaranteed cane price for growers.
Permanent Secretary for Sugar Dr Andrew Tukana is urging farmers to carefully consider the impact of decisions being made and to be aware of the information being fed is not to politicize certain sugar issues.
Tunabuna is urging farmers to sign the Memorandum of Gang Agreement and begin harvesting immediately, warning that further delays could affect cane quality, mill operations, and farmers’ earnings.
