The Sugar Cane Growers Fund (SCGF) has recently addressed concerns regarding deductions made from Diwali payments, clarifying that these measures are only affecting farmers who have outstanding arrears. This statement was issued following critiques from Opposition MP Joseph Nand, who accused the SCGF of unfair practices after highlighting promises from the Prime Minister that payments would be made without deductions.
Nand described the deductions as “deliberate cruelty,” asserting that the SCGF had failed to honor earlier assurances regarding the payments. However, SCGF Chief Executive Officer Raj Sharma explained that the fund had allocated a total of $5.416 million for gain payments, with deductions impacting only a small subset of farmers—specifically those who are significantly in arrears or facing legal proceedings.
Sharma stressed the necessity of adhering to existing contractual obligations, stating that breaching these agreements was not an option. A total of approximately $321,000, or about seven percent of the total payments, was deducted for farmers currently in default. He noted that some farmers appreciated these deductions, seeing them as a way to better manage their interest rates. Furthermore, those who wished to re-deposit any withdrawn funds were encouraged to do so.
This clarification sheds light on the SCGF’s intent to navigate the delicate balance between addressing financial obligations and supporting farmers amid ongoing economic challenges. Currently, farmers owe around $31 million in loans to the SCGF, prompting the organization to advocate for responsible financial management and encouraging farmers to utilize their funds wisely.
The SCGF’s diligent efforts, including engagement with stakeholders such as the government, highlight a partnership aimed at fostering financial stability within the sugar industry. Despite the economic challenges faced by farmers, the ongoing dialogue and collaborative support from both the SCGF and government initiatives offer a hopeful avenue for sustainable growth in the sector.