Australian Banana Growers Council president, Nicky Singh, said the Federal Government is implementing the 1.7 cents per kilogram levy that will apply to all bananas sold and be collected at the first point of sale, generally the wholesaler or retailer to whom a grower provides his product.

"The introduction of the levy is the culmination of years of work by the ABGC, which included extensive industry consultation and an earlier unsuccessful attempt to implement an ad valorem proposal in 2005," Mr Singh said.

The levy is expected to raise about $5 million per annum for investment in banana promotions, research and development, and plant health programs, with the R&D component attracting matching dollar-for-dollar funding from the Federal Government.

Responsibility for the collection of industry levies rests with the Levies Revenue Service (LRS) which is an agency within the Federal Government Department of Agriculture, Fisheries & Forestry.

"LRS has begun sending information sheets about the new levy to banana growers and intermediaries, such as market agents, to help ensure a smooth transition from the existing voluntary levy to the new statutory levy arrangements," Mr Singh said.

Detailed information about the process for making levy investment decisions and the opportunities for direct grower participation in that process will be circulated by ABGC by the end of this month.

"The introduction of the statutory levy heralds an exciting new era for the Australian banana industry because it will enable the adequate funding of promotions, research and development, and plant health programs." Mr Singh said.

"However, growers need to be aware that the statutory levy cannot be used to fund the activities of the industry's peak body, the ABGC, or the work of the ABGC Imports Committee, both of which require ongoing voluntary contributions from growers.

"I am asking that growers continue to support the ABGC by paying the 3 cents per carton voluntary levy and the 5 cents per carton Banana Imports Fighting Fund, to enable them to undertake important lobbying work on behalf of all growers."