Kingston, Oct 14 - The Jamaican government is forging ahead with a US$5.6 million fund to help sugar farmers improve their plantations despite falling sugar prices on world markets, the Caribbean country's agriculture minister said on Monday.
The fund will be opened next month, minister Christopher Tufton said in a statement.
"Farmers will be loaned money at 5 percent interest and in some cases granted money to upgrade their plantations. That would allow them to produce more," Tufton said.
The Sugar Industry Authority, a government agency, will manage the fund, Tufton said.
"Improvement in the areas of drainage and irrigation on the farms will be of importance in securing loans," he said.
Jamaican farmers had called for tax relief and a rebate on the tax on diesel fuel to allow them to be more efficient. Tufton did not address those issues.
Sugar cane fields in eastern and southern Jamaica were hard-hit by Hurricane Gustav in late August. The island earned about US$80 million from sugar exports from the last harvest, which ended in July.