There may be an inevitable, gradual increase in the production costs of sugar due to general inflation in the coming days.

Therefore, Minister for Sugar Charan Jeath Singh says the Coalition government has taken steps to mitigate the immediate pressure on sugarcane farmers in most of the areas.

Singh says they remain committed to shielding the sugarcane farmers from the adverse effects of prevailing economic challenges, including the impacts of climate change.

He adds that the concerns expressed by these farmers have not revolved around value-added tax or tax increases.

“While it is undeniable that there has been a rise in the cost of goods for the general public, including farmers, it’s noteworthy that sugarcane farmers have not experienced any substantial increases in their production costs, meaning their unit cost and gross margins remained within thresholds.”

Singh says the enduring challenges faced by farmers are rooted in long-standing issues that have not changed in relation to recent taxation amendments.

He adds that the issues include the management and operation of century-old mills, inadequate cane access roads, the absence of a functional rail network, a labor shortage, and, fundamentally, the lack of a visionary approach by the previous government over the past two decades.

Furthermore, Singh says the VAT increase has allowed the government to boost its revenue, enabling increased support for sugarcane farmers.