Water prices in the Australian state of Queensland are set to rise by AUD$2 (US$2.13) per megalitre and will likely be absorbed by farmers, the Australian Broadcasting Corporation (ABC) reported.

Queensland Farmers' Federation chief executive Dan Galligan told the ABC the industry was not expecting the rise in what has already been a difficult year.

"We lose more and more farmers every day because they can't keep up with the cost of productions in terms of the returns that they're getting," Galligan was quoted as saying.

"This is just another increase in cost of productions that some farmers will absorb and unfortunately some will not be able to, and they will no longer be viable."

Mareeba Fruit and Vegetable Growers Association spokesperson Joe Moro told the news agency that most farmers in his area would have difficulty passing on the increased cost to buyers.

"Some growers may have the opportunity to pass on that cost because their product is in high demand, for example the banana farmers," Moro was quoted as saying.

"But the reality is, the majority of farmers won't be passing on that cost; it'll come out of their bottom line."

Photo: Ecolocalizer

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