Canegrowers in Australia have threatened to withhold supplies from sugar mills in protest against further deregulation of the sugar industry.

Bruno Sartori, a cane farmer from the Burdekin region south of Townsville, said the federal and state government rescue package for the industry announced last year was not enough to compensate farmers already struggling with low prices, drought, disease and pests which have afflicted their crops.

He said that if further deregulation went ahead, farmers would consider withholding supplies from sugar mills, reported the Australian Associated Press.