Local councils have renewed criticism of Murray-Darling Basin water recovery policies following SunRice’s announcement of workforce changes at its Deniliquin mill.
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The company said the changes, which will also impact other sites, are necessary in response to reduced rice supply and ongoing dry conditions.
There is speculation voluntary redundancies are already being discussed, although the extent of workforce impacts has not yet been shared by SunRice.
Regional leaders argue the announcement highlights the growing economic and social consequences of water being removed from productive agriculture through government buyback programs.
Edward River Council has issued a statement from Mayor Ashley Hall, Deputy Mayor Kellie Crossley and councillors.
ERC described the decision to reduce operational hours at the Deniliquin and Leeton mills as “a direct consequence of a Basin Plan that has failed regional Australia”.
Cr Ashley Hall
“Farmers cannot grow the staple foods Australians rely on — including rice — without access to affordable, secure water,” they said.
“When water is continually removed from production, it undermines agriculture, weakens processing, and destabilises the very communities that feed this nation.”
The council said the region was witnessing “the real-world fallout” of those policies through reduced processing, threatened jobs, families under strain and towns struggling to protect their economic future.
Calling for an end to further water recovery measures, the council argued that water should be returned to productive use and says the Commonwealth Environmental Water Holder already possessed sufficient water to meet environmental objectives.
“A portion of that water could be responsibly and temporarily returned to the productive pool to support industries like rice and dairy — industries that literally feed this nation,” the statement said.
The council also called on the Australian Government to provide immediate financial assistance for workers affected by the SunRice changes.
Riverina and Murray Joint Organisation of Councils chair Cr Ruth McRae said the workforce changes should serve as a warning about the broader impact of declining water availability on regional communities.
“SunRice is a cornerstone employer for Leeton, Deniliquin and the wider Riverina,” she said.
“We understand the company is responding to commercial realities, but those realities are being driven by a policy environment that continues to remove productive water from our communities.
“Water buybacks do not just affect irrigators. They flow through to mills, transport operators, contractors, local businesses, families and regional jobs.”
Cr McRae said RAMJO supports healthy rivers and practical environmental outcomes, but believes the Australian Government’s continued reliance on water buybacks is undermining confidence across southern basin communities.
“The Federal Government must stop treating water recovery as a target to be chased regardless of local consequences.
“Food production, manufacturing jobs and regional communities must be part of the Basin Plan equation.”
RAMJO water sub-committee chair Jackie Kruger said the SunRice announcement reinforced concerns raised in the organisation’s submission to the Murray-Darling Basin Authority’s 2026 Basin Plan Review and findings from a REMPLAN case study into the rice industry in Leeton and Deniliquin.
“This announcement is a sobering example of what RAMJO has been warning about. Further water recovery by buybacks, rules changes or reliability reductions will place even more pressure on productive industries and regional towns.”
Ms Kruger said RAMJO was calling for a shift away from what it described as “blunt buybacks” and towards practical, place-based environmental projects developed in partnership with local government, irrigation companies, landholders, growers and communities.
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