Outgrower Scheme and Income of Farmers: A Study of Sunti Golden Sugar Company

Literatures on several agricultural produce abound on outgrower scheme across the world. This research adds to the plethora of studies with emphasis on communities surrounding Sunti su2026-01-108gar plant owned by Golden Penny Company. The study examined the effect of sugarcane outgrower scheme on the income of farmers in communities surrounding Sunti Golden Sugar Plant in Mokwa Local Government. Questionnaire, Focus Group Discussion and observation were utilised to collect data from participating farmers in surrounding communities and study their habitat. Data analysed shows the scheme has significant positive effects on farmers' income in the study area. Farmers experienced increase of income due to their participation and the income from the scheme was stable and highly beneficial. The general increase in the income of farmers can be noticed in their spending to improve their existing houses and or build new houses; increased family spending; and upgrade of means of transportation. The significant increase of income outgrowers get from the scheme makes them highly dependent on the scheme. Cessation of the scheme would adversely affect outgrowers. However, only the male folk largely benefit from the scheme. Women are left out. The company’s welfare activities towards surrounding communities are insignificant. Hence, it is recommended that NSDC takes deliberate measures on Corporate Social Responsibility such as “tax break for social amenities” taken into cognisance sugar company’s profitability and tax need of government using yearly social amenities scorecard; NSDC should institute a policy that mandates involvement of women in sugarcane outgrower scheme as farmers and staff by sugar plants; NSDC should facilitate periodic workshops to expose farmers to savings and investment education to reduce their over dependence on income from the scheme. Keywords: Outgrower Scheme, Sugarcane, Backward Integration, Sugar Production.