The Sugar Cane Growers Fund (SCGF) has recently clarified that deductions made from Diwali payments were strictly applicable to farmers with outstanding arrears. This clarification came in response to criticism from Opposition MP Joseph Nand, who accused the SCGF of treating farmers unfairly by imposing deductions, despite prior assurances from the Prime Minister regarding the payment.
Nand expressed that the SCGF displayed “deliberate cruelty” by deducting arrears from the Diwali payment, which he claimed was promised as a “payment without deductions.” Addressing these allegations, SCGF Chief Executive Officer Raj Sharma explained that the fund received a total of $5.416 million for gain payments, with deductions affecting only a small percentage—specifically for those farmers who were significantly in arrears or facing legal actions.
Sharma conveyed the importance of complying with existing contractual agreements, stating, “We could not breach those contractual arrangements that they have made.” Only about $321,000, representing roughly seven percent of the total payment, was deducted for those in default. He also noted that many farmers were pleased to have deductions made to manage their interest rates more effectively and that those wanting to deposit funds again after withdrawals were welcome to do so.
This situation highlights ongoing efforts by the SCGF to balance financial responsibilities with the support needed by farmers during challenging economic circumstances. Given that farmers currently hold approximately $31 million in loans with the SCGF, the organization emphasizes prudent financial management and encourages farmers to utilize funds received responsibly.
These proactive measures, including thorough consultations with stakeholders like the government, illustrate a collaborative approach that aims to promote the financial well-being of farmers in the sugar industry. Despite the financial challenges they face, the continued dialogue and support offered by both the SCGF and government initiatives provide a path toward sustainable growth in the sector.