Canegrowers, the sugar lobbyist group, says it is 'surprised' about the sale of CSR's sugar and renewables arm, Sucrogen, to Wilmar International Limited, a company based in Singapore.

CSR Limited has struck worth $1.75 billion for the sale of Sucrogen, and the agreement is expected to push through before the fiscal year ends.

Paul Schembri, chairman of Mackay Canegrowers, says that the deal came as complete surprise.

"This comes as an absolute and total surprise and I would say that surprise would be an understatement," Mr. Schembri said.

"Most of us were of the view that certainly Chinese-based Bright Foods were making a play for Sucrogen and this has come completely out of left field."

Mr. Schembri points out that the sugar famers want assurance about their position in Sucrogen, whether their contracts are still valid or not.

"We want to be assured, as suppliers, that obviously Wilmar will still be committed to QSL and marketing and of course commitment to [research and development]," he announced.

"But most importantly you've got a whole range of growers on the ground that have contractual arrangements with Sucrogen - they'll want to know that it's business as usual as well."