Minister for Economy, Aiyaz Sayed-Khaiyum has announced that the Government will extend the minimum guarantee price of $85 per tonne of cane for the 2021 season, making this the fourth year of guaranteed cane price support.
He says they understand the plight of the farmers and government stands behind them.
The Ministry of Sugar Industry is provided funding of $72 million in the 2021-2022 Budget which is an increase from $53.6 million which was allocated in the 2020/21 National Budget.
Sayed-Khaiyum says this includes a funding allocation of around $47 million for the sugar cane price support.
He says this includes around $22.9 million for the additional top-up payment required for the 2020 season and $24.1 million to pay for the minimum guaranteed price of $85 dollars per tonne for the 2021 season.
The Minister says the remaining funding requirement of $8 million dollars, dependent on the cane harvest for the 2021 season will be provided in the 2022-2023 Budget to meet the final payment for the 2021 season.
The Minister has also highlighted that apart from this, the Government will continue to provide the fertiliser subsidy to farmers at a rate of $25.59 per bag with a total funding allocation of $15.6 million.
He says this means that farmers will only continue to pay a price of $20 per bag of fertiliser.
Sayed-Khaiyum $3.8 million is also provided for the cane cartage subsidy from Penang to Rarawai Mill.
A further $3.3 million is also provided for cane access roads, sugarcane development farmer assistance, weedicide subsidy and new farmer assistance.
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