October 13, 2016: In keeping with Government’s promise to pay former Caroni Cane Farmers as part of the final settlement to the 2007 Transitional Payment out of the Sugar Industry, Planning Minister Camille Robinson-Regis presented seven (7) cane farmers with cheques on October 12. Cheques amounting to approximately $412, 000.00 were distributed to cane farmers from various associations. To date, over $900,000.00 has been disbursed to former Caroni Cane Farmers as part of the agreement for tranches II and III. There are approximately 90 more cheques being processed for distribution at this time, with more acceptance of the Government’s offer being facilitated daily by the Ministry of Planning and Development.
Addressing the Cane Farmers, Minister Robinson-Regis iterated her hope that the money provided will put the recipients in a better sphere with their current endeavours and thanked them for accepting the Government’s offer. Encouraged by this statement and given the opportunity to highlight some of their needs, the farmers presented some of their continuing concerns as produce farmers. The farmers’ challenges included the high cost of fertilizer and other chemicals, improper disposal of garbage on their land and the need for assistance with detecting and treating diseases that can affect various crops. They also articulated issues related to access roads and other supporting infrastructure. Also raised was the need for support in times of loss and the provision of subsidies to farmers to help diversify into other viable crops that can aid in diversifying the agriculture industry.
In response, Minister Robinson-Regis restated the importance of Agriculture to the Government of Trinidad and Tobago, and gave assurance that their concerns will be addressed using the appropriate channels.
Background details
Cabinet, by Minute No 40 of August 4, 2016, agreed to the payment of the sum of $57,965,675 to cane farmers as the final settlement to the 2007 transitional payment out of the sugar industry. By acceptance of this offer the farmers would have agreed to the formulae for the distribution of the approved sum of TT$57,965,675.00. Eligible farmers will be 2,324 farmers for Tranche II and Tranche III with a minimum payment of TT$ 12,000 with the highest money value being a little over $500,000. This is in keeping with the previous agreement and depends on the value of the cane farmer’s production during their time in operation. Government inherited the matter of a Compensation Package to Former Cane Farmers as part of the Final Settlement to the 2007 Transitional Payment out of the sugar industry. Tranche I has already been issued to the Cane Farmers of which 2,740 farmers have been issued payments in the value of $24,151,385TT.
2007
The Government decided to exit sugar manufacturing in 2007. The exit of Government from the manufacturing of sugar was also discussed with the other major stakeholders in the industry including:
- Sugarcane Farmers’ Co-operative Society Limited;
- Trinidad Island Wide Can Farmers’ Association;
- Cane Producers Association of Trinidad and Tobago;
- Direct Delivery Canefarmers’ Co-operative Society Limited; and
- Canefarmers’ Association of Trinidad and Tobago Limited.
The Government, through a ministerial committee, negotiated an exit strategy from the sugar industry for the members of the sugar farming groups if they so desire. Four groups executed an agreement on the terms and conditions for the exit strategy.
- Trinidad Islandwide Cane Farmers’ Association, on September 26th 2007 signed by Mr. Rafeeq Shah, Chairman
- Cane Farmer’s Association of Trinidad and Tobago, on September 26th 2007 signed by Mr. Dipchan Lal, President
- Direct Delivery Cane Farmers’ Co-operative Society Limited, on September 26th 2007 signed by Sundaresan Seepersad, President; and
- The Sugarcane Farmers’ Co-operative Society Limited on September 25th 2007, signed by Ramdeo Ramcharan, President.
The Cane Producers Association of Trinidad and Tobago, a small group of farmers of approximately 100 farmers, lead by Mr. Seukeran Tambie did not execute the agreement.
The benefits cane farmers have received from the Government since the closure of Caroni
- October 30, 2007 to June 2010 (on the basis of an audit conducted by the accounting firm Ernst & Young) - Three thousand four hundred and eighty-one (3,481) sugarcane farmers under the compensation package were paid an amount $82,111,774 which was paid in 38 payment tranches over the period as transitional support for two and a half (2½) years: January 2008 – June 2010. The payment of compensation represents an agreement for direct transitional financial support to allow the restructuring of the agricultural activities of these former sugar cane farmers subsequent to their exit of the sugar operations.
- Former sugarcane farmers who had tenancies with Caroni or who were squatting on state lands were regularized through the issuance of agricultural leases under the applicable terms and conditions of the Ministry of Agriculture, Land and Marine Resources. They were eligible to access to a two (2) acre plot of agricultural land for the purpose of conducting agricultural activities. This programme was conducted on a phased basis and covered approximately 6000 farmers with tenancies on approximately 13,000 acres.
- Arrangements were made for sugarcane farmers to become registered with the Ministry of Agriculture, Land and Marine Resources to allow them to benefit from the incentives of the Agricultural Incentive Programme and to access the concessionary resources from the low interest window of the Agricultural Development Bank.
- A training needs assessment was undertaken in 2003 and a training plan took place during the period 2003-2007. The result was the completion of training programmes by 18 different institutions in twenty technical and agricultural programmes. Approximately 2,500 farmers and former employees benefitted from this at a cost of $16.52 M.
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For further information please contact:
The Corporate Communications Unit
Ministry of Planning and Development
868-627-9700 ext. 2073-2076