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Sugar-cane farmers call for tax rebate
published: Monday | October 13, 2008

The Jamaica Sugarcane Growers' Association has asked the Ministry of Finance and the Public Service to remove the general consumption tax from all farming equipment for the industry and for a tax rebate to be given on diesel fuel for the sector.

Allan Rickards, chairman of the association, in an interview with The Gleaner, said these requests were among several resolutions and changes passed at the asso-ciation's 62nd annual conference held at The Jamaica Pegasus hotel in New Kingston, last Tuesday.

Rebate system

"We also passed a resolution that is requesting a rebate system, that is, the tax now charged on diesel to the sugar-cane sector, we want it rebated so that they (the farmers) get a relief on the cost of tilling and harvesting," Rickards said.

The members also approved a resolution requesting relief on certain types of debt.

"We are also requesting that farmers be put on the same footing as the new owners in terms of debt whereas they receive debt-free factories. Farmers need to go forward with relief from debt that is over seven years old, debt that is to the Sugar Industry Authority and Jamaica Cane Product Sales," he said.

Name change

A change of the organisation's name to the Jamaica Sugarcane Growers' Association from All-Island Jamaica Cane Farmers' Association was also decided at the conference.

Since the last 10 years, private sugar-cane farmers, numbering roughly 9,000, have contributed, on average, 45 per cent of total sugar-cane production to the industry.

Sugar-cane cultivation contributes up to 18 per cent of agricultural employment and represents four per cent of the overall labour force. Some 38,000 persons are directly engaged.

The country produces a pound of sugar for an average 26 cents, while in other countries where efficiencies are better, they are producing at 15 cents a pound.

Data indicate that, on an average, Jamaica produces, in terms of yield, 62 tonnes per hectare; about 77 to 80 tonnes per hectare is required.

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