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Tonight, the cane farmers and the factory owners still have not signed a commercial agreement for the start of the crop season, but they are closer than they have been in almost a year.

In a Government facilitated meeting held today, BSI, BSCFA and the Sugar Industry Control Board met for 6 hours at the BSI Staff Club in Orange Walk where both sides tried their very best to arrive at a compromise on 3 major points of contention which is preventing a signed commercial agreement for the crop season.

As we've told you the farmers have directed their negotiators that to inform BSI that they will not deliver their cane unless an agreement, either long term or interim, has been signed.

The points they can't agree on are the term of the agreement, the formula for bagasse and the ownership of the cane.

BSI is insisting on a 7 year contract while the farmers aren't willing to give such a long term. Today, they proposed a 3 year contract, but it was not accepted.

On the other point, BSI says that when the cane is delivered, they own it, but the farmers say that they own it because they do not receive immediate payment for it from the factory owners. It is spread out over a period of payments made during the crop year.

And the third point, a formula for a bagasse payment still can't be agreed upon.

So, with those issues still pending, we spoke with both sides about the progress made, and here's what they told us:

Belizario Carballo - CFO, BSI

"We had a long session today, I think we had a long discussion on points that have been identified as holes which we still not are not on full agreement on and we came to the meeting to address these points. As you all are aware there was involvement on the part of the prime minister, deputy prime minister in crystallising those points of disagreement."

Daniel Ortiz

"Was there any meaningful progress?"

Ezequiel Cansino - Chair, Com of Mgmt, BSCFA

"We believe, yes we did achieve something. We represented our proposals and we had enough time to discuss."

Belizario Carballo

"Clearly there is discussion on it. Both sides will have to consider certain things that were discussed. We have agreed that we will have to get back on those 3 points. There isn't at this point an agreement on those 3 points."

Ezequiel Cansino

"I don't want to go to explain everything on those proposals. We did present proposals."

Daniel Ortiz

"Our information is suggesting that the beginning of this issue of trying to reach the target date, it has always been BSI that has been hardening it's position and the farmers have been trying to compromise; So that the crop date isn't jeopardised. How do you respond to those who say you have been too unduly stanching in your positions to call it a real negotiation?"

Belizario Carballo

"That's not correct. Clearly that is not the case, how ever you came to that view is completely beyond me. This is a very delicate matter. This is a process that has taken us some time to reach this point."

Reporter

"Do you feel BSI came to this meeting as flexible as you were thinking?"

Ezequiel Cansino

"I think that they expected to finish today. Since our proposals that we presented to them, they say that they can't decide today. Even though that was the position of BSI today, we will also have to inform our cane farmers."

Daniel Ortiz

"Will they ever be a point where they sugar industry won't have to worry every year that we won't start on time? There is this adversarial business relationship between the cane farmers and the factory owners. Can that be achieved?"

Belizario Carballo

"Well that would be our hope and I think that is one of the reasons on the arguments on having a long term agreement. Clearly this, being in discussions negotiation agreement for 2 years has not really been as productive as you all appreciate. We will all want to have a clear agreement where we can start crops and don't have to be at this every year."

A new date has not been set as yet for the follow-up meeting, but both sides are cognisant of the season start date. Both sides agree that December 8, which is next Monday, is the ideal start time for the best returns, but if these points aren't resolved before then, the crop will be delayed, again.