The establishment of a new sugar mill to replace Penang Mill depends on adequate supply of sugarcane in and around Rakiraki.

This was stressed by prominent businessman and sugar industry stakeholder, George Shiu Raj.

Raj says the proposed sugar mill is at a crossroad due to the decline in supply of sugarcane, from 300,000 to 150,000 tonnes in Rakiraki annually.

“At the end of the day, if people might say that, you know, to build up a mill in Penang, first of all, we must be very sensible. We must be very sensible. We need to have sugarcane first.”

Raj says it will be sensible to restore the supply of sugarcane to at least 250,000 tonnes, in order to ensure the viability of the new sugar mill in Rakiraki.

Meanwhile, earlier last month, Minister for Sugar Industry Charan Jeath Singh revealed the possibility of purchasing a second-hand sugar mill to replace Penang Mill.

Singh also stated that the Food and Agriculture Organization consultants have undertaken a review of the sugar sector, and their report will provide a clear understanding of the industry.

The report will be presented to the Sugar Ministry later this year.