Code of conduct for sugar industry

The federal government will introduce a code of conduct for the sugar industry to ensure grower choice in marketing.

A generic image of sugar cubes

The federal government will introduce a code of conduct for the sugar industry. (AAP)

The Turnbull government has announced a code of conduct for the sugar industry following an ongoing dispute between sugar marketer QSL and miller Wilmar in Queensland.

Treasurer Scott Morrison says the code will be introduced to parliament by regulation next week and will come into force the day after.

He said it would ensure grower choice in marketing and that all parties had access to arbitration and mediation.

Agriculture Minister Barnaby Joyce said he would have preferred it if QSL and Wilmar had worked out a solution themselves.

"They've always known we had a code of conduct in the top drawer and we're going to utilise it," he told reporters in Canberra.

Mr Morrison described the code as "minimalist".

"It's not controlling prices or re-regulating the industry," he said.

Wilmar and QSL have been unable to reach a new agreement to determine mill access and sugar prices, leaving about 1500 farmers unable to crush their cane before the 2017 season.

"If there is any breakdown either today or in the future these provisions would kick in; it's a safety net," Mr Morrison said.

Mr Morrison praised Queensland National MP George Christensen for going into bat for the growers.

The Mackay-based MP had threatened to quit the coalition over the issue in the past because of government inaction.

The development is also a win for One Nation leader Pauline Hanson who was refusing to vote on any legislation in the Senate until there was a breakthrough.

Mr Morrison said he had not had a conversation with Senator Hanson on the issue.

Mr Christensen said the code would provide the certainty the industry desperately needed.

"This is a win for the little guy against a multinational behemoth," Mr Christensen said.

"Farmers were beholden to monopoly foreign miller Wilmar in Sarina, Proserpine, Burdekin, Ingham and elsewhere. That will be no more."


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Source: AAP



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