14/07/2023
MINISTRY OF MULTIETHNIC AFFAIRS AND SUGAR INDUSTRY BUDGET 2023- 2024
The Minister of the Multiethnic Affairs and Sugar Industry is pleased to present the Ministry of Sugar Industry 2023 - 2024 Budget.
The Ministry of Multiethnic Affairs and Sugar Industry was provided an allocation of $51.7m; an increase of $6.3m or 14.1% from the $45.3m allocated in the 2022 – 2023 Budget.
The increase of the budget is owed to the introduction of a new line Ministry of Multiethnic Affairs with funding of $2.0m and the introduction of new budget items one of which is the drainage for sugarcane farms with an allocation of $5.5m. Now that the world market for sugar has improved, the government's contribution has also been reduced. The allocated funds are sufficient to ensure that growers will receive the guaranteed price of $85 per ton of sugarcane.
My Ministry is focusing to increase the cane production for the 2024 season through the Sugar Cane Development and Farmers Assistance ($5.0m), Fertilizer Subsidy ($20.0m), Weedicide subsidy ($1.0m), Drainage for Sugarcane Farms ($5.5m) and New Farmers and lease premium assistance ($2.0m).
Sugar Cane Development and Farmers Assistance Sugarcane programme.
To support the aim of the Sugar Industry to increase the current cane production of 1.6 million tonnes to 1.9 million tonnes by the 2024 season, Sugar Cane Development and Farmers Assistance Sugarcane programme budget has been increased from $1 million to $5 million.
The 1.9 million tonnes could be achieved by bringing under-utilized land to cane production, replacing uneconomical ratoon, improving the adoption of new technologies, promoting best husbandry practices, and improving soil health.
Fertilizer Subsidy Programme
To support the increase in sugar cane productivity, proper fertilization is significantly needed. A budget of $20 million has been allocated for Fertilizer subsidy.
Weedicide Subsidy Programme
Weedicide is crucial to the growth of cane in controlling the w**ds, to produce good yielding sugarcane.
A budget of $1 million has been allocated for the w**dicide program.
The subsidy will assist sugarcane farmers afford effective w**d control measures, ensuring that their crops are not overshadowed or outcompeted by invasive w**d species.
Cane Access Road Programme
Cane Access Road a crucial transportation network for the movement of sugarcane from the fields to the mills.
An allocation of $2 million has been allocated to ensure that farmers transport their cane to the mill with no stand over cane.
Currently more than 80% of the cane supplied to the mill is delivered through the road network.
The sugar industry is often concentrated in rural areas, where the availability and condition of road infrastructure can be limited. By allocating a budget of $2m for cane access roads, government has ensured the overall connectivity and accessibility of these rural areas.
This not only benefits the sugar industry but also supports the development of rural communities, enabling many residents to access essential services, markets, and urban facilities.
Cane Cartage Programme
Cane cartage program which provides transportation cost relief by ensuring farmers are not burdened with the excess cost of transporting their cane from Penang mill area to Rarawai mill, A budget of $4.9 million has been allocated to this programme.
The program will continue with a budget of $4,961,098 which will allow the Penang mill farmers to transport over 130,000 tonnes of cane to the Rarawai mill.
Farm mechanization programme
The Sugar Industry has been facing a recurring and major challenge of labor shortages and aging farmers. There is a lack of laborers, and cane cutters, and a shortage of the latest farming equipment for farm management.
To ensure the viability of the sugar industry, there needs to be a huge shift towards mechanization.
Farm mechanization programme aimed at encouraging sugar cane farmers to embrace mechanization which will reduce labor dependency. A budget of $500,000 has been allocated to the programme.
My ministry has revived two programmes to assist and support the new and existing cane farmers in providing relief to their cost of production.
Small Grants Scheme Programme
Ministry of Sugar Industry has continuously provided grant assistance to cane farmers with input subsidies, harvesting, machinery, and transportation. However, farmers are still having difficulties in meeting expenses for some basic farm needs such as implementation tools and machinery, fencing materials for cane farms, safe drinking water, and irrigation implements.
The sugar individual Small Grants Scheme with a budget of $0.5 million aims to enhance support to farmers by way of livelihood support that will assist the farmers to diversify and not lean on only sugarcane income.
New Farmers and Lease Premium Assistance Programme
To ensure the viability of the sugar industry, Ministry needs to take measures to attract new farmers while at the same time maintaining those good cane farmers by providing some relief for their lease renewals.
The New farmers and Lease Premium Assistance which is aimed at new farmers who wish to invest and enter the industry, a budget of $2 million has been allocated for lease premium assistance, to ensure that the much-needed relief is provided to the new farmer who has financial hardships.
In addition, my Ministry is introducing three new programs to assist the sugarcane farmers with issues faced on the ground as well as motivate them to increase their cane production.
Drainage for Sugarcane Farms Programme
Climate change has affected the sugarcane farmers through frequent rain and flooding which caused drainage issues resulting in waterlogged cane fields. Consequently, this has resulted in a significant reduction in cane production.
A program for drainage for sugarcane farms has been allocated $5.5 million to address the neglected drainage system in the sugarcane areas.
The drainage programme will comprise infield drainage clearing, main drains clearing, culverts, and floodgates that require repairing or maintenance to enable farmers to cultivate cane areas adequately with potential good yield.
Cage Bins Programme
To support the mechanical harvester on the ground, my Ministry has introduced a cage bin program, allocating $1 million to produce an additional 50 cage bins to assist those farmers on rail mode.
The growers nearer to the mills can absorb the increase, those located in the outer areas are not able to sustain themselves and are slowly leaving from the industry.
This is to ease rail transportation issues for sugarcane farmers.
Farmer Incentive Programme
Farmers are producing cane below its optimum level. Our average production is 47 tons per hectare while several countries including India, Brazil, Mauritius, and Eswatini are producing above 90 tons per hectare.
To motivate farmers to increase their yield and productivity, my Ministry is providing incentives to farmers through financial rewards or bonuses in addition to their normal cane proceeds through the Farmer Incentive Program.
I have allocated $1 million to encourage farmers to adopt best practices, invest in modern farming techniques, and improve the overall efficiency of their operations.
Manual harvesting support program
Manual harvesting support program aimed at the 60% hilly terrain farms in harvesting their cane. A budget of $1 million has been allocated to the programme.
Manual harvesting is well-suited for sugarcane fields with challenging terrain or difficult to access farms.
The sugar industry has close to 60% farms which can be termed as hilly and the budget support of $1 million will assist farmers in these hilly areas to have their farms harvested.
This will create employment opportunities and foster income generation for our rural communities.
With this grant and subsidy programme, I am confident with the farmer's commitment, we can produce 1.9 million in the 2024 season.
I would like to convey my appreciation to the Minister of Finance, Honorable Biman Prasad for his tremendous support towards the Sugar Industry.