THE Rarawai Penang Cane Producers Association has received $2.4million in Fairtrade premiums for sugar sold from last season's crop.
Executive manager Sanjina Narain said during a general assembly held earlier this week, resolutions were passed on what the funds would be used for.
"Unlike what had happened previously, the funds will be utilised in a more transparent manner to ensure that all growers benefit from it," she said.
The association will pay a $4 subsidy per bag for all fertiliser bought last year.
Farmers will also receive subsidies on weedicide and $370,000 will be set aside for this.
All the 14 sectors in the Rarawai-Penang area will receive $20,000 each for community development programs.
Each sector will also receive $5000 to address environmental issues such as drainage.
The association has also allocated $90,000 towards a death benefit scheme where each contract holder's family will receive $200 in the event of his or her death.
"We are also going to give a group called the Rarawai Co-operative $10,000 to assist them in the purchase of a mechanical harvester.
"Because of the labour issues we have faced in recent times, we have plans to assist co-operatives interested in mechanised harvesting," Ms Narain said.