The Productivity Commission has ruled that tariffs should not be placed on cheap imported food to help Australia's struggling processed fruit and tomato industries.

In its interim report, the commission concludes emergency safeguards are not required because they're unlikely to help fruit growers or processor SPC Ardmona in the short term.

It says SPC is owned by Coca-Cola Amatil, a company with large profits that can afford to wait until the final report is handed down at the end of the year.

Fruit grower Peter Hall disagrees with the commission, but says he'll continue the fight to get support for the industry.

"When you see piles of dead trees stacked up around the Goulburn Valley, perfectly healthy trees that are no longer needed because of the importation of fruit, surely that's a compelling reason to say that something's wrong."

The Productivity Commission also concluded:

The injury to growers is already locked in for this year and unlikely to be reversed by provisional safeguard measures, because SPC Ardmona has negotiated contracts for the next season.

The injury to growers is already locked in for this year and unlikely to be reversed by provisional safeguard measures, because SPC Ardmona has negotiated contracts for the next season. It says 50 growers have been retained by SPC Ardmona, and notes the company says that if production increases, those 50 growers will be asked to expand, rather than dumped growers getting new contracts.

It says 50 growers have been retained by SPC Ardmona, and notes the company says that if production increases, those 50 growers will be asked to expand, rather than dumped growers getting new contracts. The commission says SPC Ardmona have not supplied sufficient evidence that its factories would close if safeguards weren't applied.

The commission says SPC Ardmona have not supplied sufficient evidence that its factories would close if safeguards weren't applied. If tariffs were placed on the industry for 200 days, it would be unclear if it could significantly benefit the industry.

A final decision on tariffs will be prepared by the Productivity Commission by December 20.

The interim report suggests the news will not get better for growers.

"The Commission has found that recent increases in imports of processed citrus, pears, apricots and 'other fruits' are unlikely to be sufficient to meet the terms of Article 2.1 of the Agreement on Safeguards," it says.

"The Commission has found that recent increases in imports of mixtures and arguably of peaches may meet the terms of Article 2.1. Further data are required to reach a firm conclusion, which will be available in the final report. "

The report suggests there's a lack of evidence to support the case for safeguards for most varieties of processed fruit and tomatoes.

However, it says the 'mixtures and arguably peach' categories could still receive a decision that is favourable to fruit growers.

Meanwhile, Federal Agriculture Minister Barnaby Joyce says fruit growers shouldn't hold their breath for $25 million in funding for an SPC factory upgrade, pledged by the former Labor government.

"Things are tight, we're drawn to $276 billion on a $300 billion limit," he said.

"If we don't do something about how we manage our debt, we won't have to worry about suggestions of money very soon, because if the credit limit is not increased, literally cheques will bounce.

"You can write out a cheque for $25 million, it just won't be honoured."