Qld govt's sugar protest 'pointless'

Queensland's government is being told to stop acting "hysterically" after the passing of legislation giving canegrowers more control over marketing in the state's $2 billion sugar industry.

Katter's Australian Party MP Shane Knuth's bill was passed late on Wednesday night with the support of the Opposition and Independent MP Billy Gordon.

The Palaszczuk government, which suffered its first legislative loss, has wasted no time writing to the Australian Competition and Consumer Commission and Prime Minister Malcolm Turnbull, arguing aspects of the bill are illegal and anti-competitive.

But Mr Knuth says the government is fighting a losing battle, given the legislation already has the backing of the Queensland Law Society.

"I think that the government, they're licking their wounds at this present moment, likewise the milling companies," he said.

"I just say that they need to basically get over it."

Mr Knuth insists the changes will increase competition by allowing canegrowers to choose which mills they deal with.

It will also facilitate fair resolution of any commercial conflicts arising between growers and millers, he said.

Opposition Leader Lawrence Springborg says the government needs to accept the parliament's will.

"Their stuff is quite hysterical and that's the real concern out there, that in amongst all the hysteria, it creates unnecessary concern," he said.

However, Agriculture Minister Bill Byrne insists the government's concerns are justified, with miller MSF Sugar already having cancelled "all non-essential capital expenditure until uncertainty over the bill is resolved".

Deputy Premier Jackie Trad warns it will hurt the state's economy.

"(It's) a decision that will have significant ramifications for our state's reputation as a safe place for investment," he said.

"It puts at risk future foreign direct investment in Queensland, which amounts to $2 billion in Queensland's sugar industry alone over the past 10 years."