SYDNEY - Australia's largest sugar millers had hoped to sell the sweetener via in-house marketing arms from 2017 but the plan is under threat as legislation allowing farmers the right to choose who sells their sugar is set for a critical vote on Wednesday.
Wilmar International Ltd, MSF Sugar, owned by Thai sugar giant Mitr Phol, and the Australian unit of Chinese agribusiness COFCO Corp plan to stop selling sugar through the industry-owned marketing body from 2017.
But the move is unpopular with sugar farmers in Australia, the world's third largest exporter of raw sweetener.
The Australian Party, which is fronted by a maverick rural politician Bob Katter, has introduced a bill to the Queensland state parliament that will allow growers in the country's largest sugar producing state the right to decide which entity sells their cane after being processed by a local mill.
A vote will be held on Wednesday evening.
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The success of the bill is expected to be decided by the vote of the sole independent MP, Billy Gordon.
Growers say the proposal would allow greater competition in the sugar marketing industry, supplementing their incomes.
But the industry body that represents sugar millers said the bill would deter foreign investment.
"[The proposal] has sent a clear message to domestic and foreign investors considering putting their money into Queensland - stay away from Queensland because your legal rights are not safe in this state," said Dominic Nolan, chief executive officer of the Australian Sugar Millers Council.
The three sugar millers, which account for the majority of sugar produced in Australia, say bypassing the industry marketing body will allow them to control their supply chains and maximise revenues.
Australia sugar production during the 2015/16 season is expected total 5 million tons.
