Gov’t helps cane farmers as returns dwindle

These are not good times for the sugar industry, but on Friday the government announced that it will try to help farmers stay afloat until the situation improves. With the price per ton of cane paid to farmers falling to thirty-seven dollars and thirty cents for the recently completed crop, the Prime Minister has promised a million dollars in subsidies. One hundred and eleven thousand tons of cane was delivered in the 2002 season, meaning the extra payments will work out to less than a dollar per ton. Returns to farmers have dropped steadily over the last three years from a price of forty-two eighteen per ton in 2000 and forty-one thirteen in 2001. Reasons for the decline are a drop in world prices, the lower value of the Euro, diminished cane quality and lower factory efficiency. Indications are that the coming crop will be somewhat improved.