A YEAR and three months since amendments were made to the Sugar Act in the Queensland Parliament, Wilmar Sugar has "agreed in principle” to the finalisation of a sugar sales deal with Queensland Sugar Limited.

At a late sitting of the Parliament on Wednesday night, Leader of the Opposition Tim Nicholls, at the request of the Prime Minister Malcolm Turnbull, introduced a private members' bill, which if passed would have forced a resolution from the feuding parties through arbitration.

Instead, the bill was voted down in favour of a Labor plan to employ mediation facilitated by Queens Councillor Richard Chesterman.

This was a move criticised by Mr Nicholls prior to the Parliament deliberating the members' bill on Wednesday, as he claimed it would cost the tax payer millions in QC fees.

However Lobby group Canegrowers have welcomed the resulting breakthrough made by Wilmar and QSL and considered it "an important step towards key contracts being in place for the 2017 season,” CEO Dan Gallian said.

Mr Nicholls agreed, citing a recent 48-hour ultimatum presented to Wilmar and QSL ahead of a meeting of Wilmar growers in Ayr two weeks ago as the reason for the ground-breaking agreement.

"The Liberal National Party's ultimatum and comprehensive legislation has worked. We now await the quick resolution of the final contract. Both parties should move swiftly to finalise the formal contract,” he said.

John Casey, a Proserpine grower and member of the Proserpine Canegrowers board, said he thought mediation was a better option than arbitration.

"If they (introduce) legislation that forces arbitration it could take months. At least with a mediator it will be a bit easier. I didn't think the legislation would get through anyway,” he said.

Mr Nicholls claimed the Palaszczuk Government had demonstrated "nothing but contempt for cane growers.”

"Annastacia Palaszczuk, Bill Byrne and Labor MPs from all cane growing districts in the state have failed at every juncture to stand up for the farmers in their electorates,” he said.

But Mr Casey said the frantic action taken by politicians at all levels of government was a transparent attempt to score points with voters in cane growing electorates.

"It's a political thing, (they are) trying to kick it on for the next election and get votes. Until there is an election you usually don't see them, then they start getting around trying to do stuff to try and get back in. Its more politically motivated than anything, he said.

In a statement to growers supplying Wilmar mills yesterday afternoon Executive General Manager of Wilmar in North Queensland, John Pratt said the company was grateful for the assistance of QC Richard Chesterman.

"Wilmar and QSL have committed to concluding a formal agreement as soon as possible. Once a formal agreement is executed, we will be able to offer QSL as a marketer in our Cane Supply Agreement process,” Mr Pratt said.

QSL's CEO Greg Beashel told growers his organisation "welcomes this long overdue development”.

He also warned "there is still a lot of work to be done before a detailed contract is secured and Wilmar Growers can begin to access QSL marketing and pricing services for the 2017 Season and beyond”.

"That final contract and its implementation is now our primary focus,” he said.