Fiji: Sugar mill promise in Rakiraki faces challenges
The Coalition Government’s plan to build a new sugar mill in Rakiraki faces significant hurdles due to financial constraints, according to Fiji Sugar Corporation chairman Nitya Reddy. The estimated cost of $125-$150 million makes it difficult to justify on commercial grounds. Rakiraki’s sugarcane production has declined from 330,000 tonnes to 110,000 tonnes in recent years, further complicating the project. A thorough assessment is underway, with stakeholders expected to reach a decision within six months.
The Coalition Government’s promise to build a new sugar mill in Rakiraki may face significant challenges due to financial problems. According to Fiji Sugar Corporation (FSC) chairman Nitya Reddy, constructing the mill “will be very difficult to build purely on a commercial basis,” reported The Fiji Times.
Reddy acknowledged that both The People’s Alliance Party and the National Federation Party had pledged to reinstate the Rakiraki mill. “At that time, there was hope that we could reset the industry to a better level,” he said.
He noted that in the past, Rakiraki produced as much as 330,000 tonnes of sugarcane. However, in recent years, production has drastically dropped, with only 110,000 tonnes of cane harvested this year.
“With costs estimated between $125 to $150 million, it will be very hard to justify the investment solely on commercial grounds,” Reddy explained.
The Penang mill project, part of this effort, is being carefully evaluated by all stakeholders. “Building a new mill in Rakiraki is a decision that will impact generations. That’s why we are approaching this with caution. We are currently conducting thorough assessments and hope to conclude within the next six months,” Reddy added.
Source Link : https://www.chinimandi.com/fiji-sugar-mill-promise-in-rakiraki-faces-challenges/
