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COST OF GROWING SUGAR CANE TO INCREASE AS GOVT IMPOSES LEVY

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MBABANE –The cost of doing business for sugar cane growers is set to increase following approval of the levy which has been fixed at E4.38 per ton of sucrose.


The levy, which came into effect as from May 12, will be paid for every ton of sucrose that has been supplied to, and accepted by a miller.
Minister of Agriculture Moses Vilakati made this pronouncement through legal gazette number 75 of 2017. In issuing the legal obligation for cane growers, Vilakati exercised his powers conferred by the Cane Growers Act of 1967.
It has been mentioned that the due date for the levy in respect of each delivery of sucrose during a mill-month will be the tenth day after the last date of the mill-month.


“In the absence of satisfactory proof to the contrary, the miller shall be deemed to have accepted sucrose on the date of delivery of the sucrose,” Vilakati emphasised.  
The minister said the purposes of the notice, the expression mill-month, would have the same meaning assigned to it by the schedule to the sugar act.


In terms of how the levy would be payable, the minister said: “A miller shall deduct the amount of levy imposed on each cane grower from the periodic payments made to the grower for sucrose supplied by that grower, and shall remit the amounts of such levy to the Swaziland Cane Growers Association (SCA) by the due date.”  

   
It should be noted that with the introduction of the levy, despite the fact that the country has received good rains which came in reasonable volumes, it was too little to support the growth of the sugar cane crop to its full potential. 
This therefore means there would be relative revenue increase. 

 

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