Minister Sunil Handunnetti has announced a relief package for Sevanagala farmers, pledging to buy 14,000 metric tons of burnt sugarcane at a reduced price while ensuring fair payment for raw sugarcane to safeguard livelihoods and production.
The Lanka Sugar Company will purchase raw sugarcane this season at Rs. 9,000 per metric ton and burnt sugarcane at Rs. 5,000 per metric ton, Minister of Industries and Entrepreneurship Development Sunil Handunnetti confirmed at a press briefing. This move comes amid growing tension as the Sevanagala Sugarcane Farmers’ Union threatened to halt supplies until the burnt harvest was bought.
According to the Minister, the protest gained traction when the Tractor Drivers’ Association also stopped transporting sugarcane, leading other farmers to join in solidarity. The company, which relies entirely on sugarcane for sugar and ethanol production, faced disruption as supplies dwindled.
Handunnetti emphasized that the Lanka Sugar Company was established for the benefit of farmers. He pointed out that the institution had been plagued by waste and corruption under previous governments, yet the current administration remains committed to preserving it under state ownership. Around 100,000 families in Pelwatte, Sevanagala and Thanamalwila depend on sugarcane cultivation, making the company’s survival crucial for regional livelihoods.
The Minister admitted that the burnt sugarcane, totaling 14,000 metric tons, is of little value since the sugar concentrate has been lost. Grinding it could damage the only cutter at Sevanagala, potentially forcing the factory to shut down. Nevertheless, he assured that the government is ready to accept the burnt crop at Rs. 5,000 per ton. He added that even though the company cannot make sugar from it, the financial burden would be shared across all farmers.
He explained that while burnt sugarcane will be bought at Rs. 5,000 per ton, raw sugarcane will continue to fetch Rs. 9,000 per ton this season. Farmers supplying raw sugarcane will be paid at the time of purchase, whereas payments for burnt sugarcane will be made at the end of the season. From next season, the government expects to restore the standard rate of Rs. 10,000 per ton for raw sugarcane.
Handunnetti further stressed the importance of providing fertilizer and transport facilities to farmers next season, along with preparing land to ensure smooth operations. He underscored that sustaining the company was essential to protect the incomes of thousands of families tied to the sugarcane industry.
