LSCP out grower scheme was introduced in 1985 at a time when sugar cane small holder farmers were growing alternative crops. Due to restrictions being uplifted on the importation of sugar by the State resulted in a drop of jaggery prices.

LSCP came to the assistance of these farmers by encouraging them to grow sugar cane and that they would be paid a fair price for their produce. Surveys carried out revealed a potential for 8,000 hectares was available in the out grower smallholder areas.

Formation of this scheme has proved so attractive that over 317,000 tons of canes have been delivered in the l991/92 Maha season by over 7000 farmers. The Company has opened six outstation buying centers in the Divisional Secretariat Divisions at Buttala, Wellawaya, Badalkumbura and Moneragala Areas for intensive development.

The Company has set up an out grower section with a team of officers proficient in cane farming and provides extension services to out grower farmers, and also provides financial assistance besides providing fertilizer, seed cane and herbicides at competitive prices.

The average payment for cane to out grower farmers is around Rs.10 Million per week during factory operating months.