SUGAR-CANE GROWING IN FORMOSA 35 



acre, for which the mills pay at the rate of Rs.8'10 

 per ton, so that the farmers' gross return, per acre, 

 does not amount to more than Rs.100. It is difficult 

 to ascertain the exact cost of production of cane on 

 any of the factory plantations, since they have not 

 been long in working order and have suffered many 

 vicissitudes from typhoons and other causes, but at 

 the Government Experimental Station at Daimokku, 

 which is favourably situated, the lowest figure at 

 which they can grow cane is Rs.8'14 a ton, not in- 

 cluding the cost of seed, supervision or interest on 

 capital. About 20 per cent, must be added to the 

 cost on account of these items, and it is safe to say 

 that the cost price of cane in Formosa is at least 

 Rs.10 per ton. The land on which the farmers grow 

 the cane is good rice land on which they used formerly 

 to grow two crops of rice, or one crop of rice and one 

 of sweet potatoes, each year, and these crops certainly 

 yielded larger profits to the farmer than the cane now 

 yields him. It is generally admitted that the farmer 

 does not want to grow cane and loses by doing so. 

 Some mills recognise this and pay him some com- 

 pensation for his losses. There can be no doubt that 

 he only grows cane for the mills under official pressure. 

 In theory this is not the case, but the Japanese 

 newspapers openly state that it is so, and there is 

 little disguise about it. The success of the sugar 

 industry so far has been obtained by the mills taking 

 all the profits and the farmers bearing the losses. A 

 mill which was paying a 20 per cent, dividend in 



