The Federal Cabinet today [Tuesday] again considered the sugar levy intended to help Australia's ailing sugar industry.

The sugar industry is struggling under the impact of falling world prices and drought and a levy had been proposed as part of a planned A$150m (US$82m) assistance programme. The levy will be about A$16-18 cents per kilogram on retail sugar sales, reported ABC News.

Agriculture minister Warren Truss said the cabinet hadn't decided whether to apply the levy to all users of sugar in Australia or whether it will only be applied at retail level.

"A large proportion of this package will be funded by a levy on sugar sales, but there will also be a contribution from the federal government and we're asking the Queensland government to also contribute," he told reporters.

The programme will also include some welfare assistance for farmers, Truss added.