[Photo: FILE]

Concerns have been raised over whether Government subsidies to sugarcane farmers are being properly targeted, with questions about whether more support should go to farmers who contribute most to production.

This was highlighted during the Ministry of Agriculture, Waterways and Sugar Industry and the Ministry of Sugar Industry’s submission of its 2021–2022 Annual Report to the Standing Committee on Economic Affairs.

Committee Chair Sakiusa Tubuna questioned the large subsidies provided to farmers during the period, raising concerns about assistance being given across the board without clear targeting.

Tubuna says there is a concern that around 20 percent of farmers could be producing about 80 percent of the total cane tonnage, while many other farmers are not performing at the same level.

“But this will also go down to how we strategise the way forward for the industry. I was in Labasa the other day, where they said the new way forward now is that only the bigger farms will be the ones that will survive. If not the smaller farms, those are the ones that we are going to be targeting for this diversification.”

In response, Ministry of Agriculture Director Operations Praneel Naidu says they are looking at changing the way sugar farmers receive subsidies, with more support going to farmers who produce more.

“You’ve picked on it quite aptly when you say that 80% of the farmers are getting benefits, but they are not producing the yields that we want them to produce. Unfortunately, at the moment our grant is set such that around 50% or more goes into kind of a payment. So generally everyone has access to that. If you want to have a way forward, then we need to set some tiers.”

Naidu says farmers producing up to 100 tonnes can receive $2,000, those producing 100 to 300 tonnes can receive $4,000, while those producing over 300 tonnes can receive $8,000 or more.

The Ministry of Agriculture says it is focusing on a reward system that gives more support to farmers who produce more, with the incentive now focused on green cane farmers.