The annual grant given to South Pacific Fertilizers Limited by the government has been officially signed ensuring a reduction in the cost of fertilizer and weedicide for the average sugarcane farmer in the country.
This comes under announcements that were made in the 2017/2018 National Budget.
$6.3 million was allocated in the budget as a weedicide subsidy to support the procurement of weedicide such as Diuron 80 and Glyphosate and Amine 720 to enable farmers to adopt better weed control and keep their production costs stable.
The fertilizer Subsidy announced in the budget was $15.3 million.
Permanent Secretary for Sugar Yogesh Karan says the government has backdated the new fertilizer subsidy rate from 1st January 2017 instead of 1st August 2017.
Sugarcane farmers are now paying $20 per 50kg bag of fertilizer which is 44% of the price of $45.59 per $50kg bag.
The government pays $25.59 which is 56% of the price for 50kg fertilizer.
Sugarcane Growers Council CEO Sundresh Chetty says the grant means a reduction in the production cost for farmers and the increase in their income.
