Fiji PM: Sugar sector facing hard truths
In Fiji, Prime Minister Sitiveni Rabuka highlighted the sugar industry’s strain due to declining yields, aging infrastructure, climate risks, and a mill fire. The government increased FSC loan guarantees to $300 million, introduced drones, mobile soil labs, and training, while planning two modern sugar mills on Viti Levu to boost production and ethanol output.
THE sugar industry is under immense strain, says Prime Minister Sitiveni Rabuka.
Speaking at the launch of the PM’s Sugar Cane Farmers Awards in Lautoka this week, Mr Rabuka highlighted the industry’s realities and the Government’s ongoing initiatives to revive the sector.
“Yet today, we face hard truths,” he said. “The sugar industry is under immense strain.
“Declining yields, ageing infrastructure, climate vulnerability, financial instability, and the exodus of young farmers threaten its very future.
“Yes, further than these setbacks – most recently, is the unfortunate fire at the Rarawai mill.
“But as always, our spirit has been one of regroup, rebuild, and recover together.”
He said the Government’s guarantees to support the Fiji Sugar Corporation’s bid for loans was part of their ongoing efforts to support the industry.
“The Government has acted decisively by increasing the FSC government guarantee from $200million to $300million.
“This financial support would provide critical liquidity to the sector, and ensures operations continue smoothly while rebuilding efforts are underway.”
The Prime Minister added his recent visit to India also strengthened ties and industry support from the Indian government.
“Through my recent visit to India, we have strengthened ties that are already bearing fruit, which would include the provision of 12 agricultural drones to enhance precision farming, two mobile soil testing laboratories for efficient land management, an ITEC expert stationed with FSC and training opportunities for Fijian sugar professionals in India.
“These are not one-off initiatives. They are investments in knowledge, technology, and reliance.”
FSC assesses bids for new sugar mills
THE Fiji Sugar Corporation is sifting through applications from international firms interested in working with the Government to construct two new sugar mills on Viti Levu.
Sugar Minister Charan Jeath Singh said applications for the tender closed on September 30.
“We have to bring in modern mills that can do power generation, make ethanol and other value-added products,” said Mr Singh.
“So, what we have done in the last month or so we have called for global tenders and see who can come in and set up brand new mills here.
“Those tenders closed on September 30 and currently the FSC management team is analysing those tenders who would be the best suppliers of the machines and in setting up the mills.
“So once that is finalised we will then have to identify a financier that can finance the project.”
He said after this process, his ministry would push for Government support to finance the project.
“Once that is done, we will have to go to the Government to seek their guarantee to purchase machines and get the mills up and running.
If we are on track to do that it will not happen tomorrow.
“The project will probably take two years and in the meantime, we will still keep running these two (Lautoka and Rarawai) mills and identify sites where we can put these two brand new mills.
“We will set up one first then put up the second one further down the line.”
FSC braces for up to 30,000 tonnes of standover cane
STANDOVER or uncrushed sugar cane at the end of the 2025 crushing season could be between 20,000 tonnes and 30,000 tonnes.
Fiji Sugar Corporation Ltd (FSC) board chairman Nitya Reddy said this was a direct impact of having only one mill operating on Viti Levu despite a positive forecast of 1.5million to 1.6million at the start of the season.
“We are looking at a more improved crop this year and at this stage the estimate is between 1.5million and 1.6million tonnes of cane,” he said.
“Unfortunately, that is being threatened by the prospect of a significant amount of standover cane because of the implications of what has happened in Ba and because of difficulties faced in getting crushing done at Lautoka mill.
“We might have to envision the reality of standover cane to the tune of between 20,000 and 30,000 tonnes of cane.”
Mr Reddy said that as of Tuesday night, there was a total of 320,000 tonnes of standover cane between cane delivered to Lautoka and Rarawai.
“About 75,000 tonnes of that (320,000 tonne) cane is from the traditional Lautoka mill area and about 250,000 is from Rarawai.”
Mr Reddy said the FSC was doing its best to crush every load of cane by providing subsidies for each transport to the Lautoka mill which crushes an average of 4000 tonnes of cane per day.
“We are facing major logistical problems.
“We do not enjoy having to inflict the trouble that our truck drivers are getting.
This is why we have imposed a very strict regimen of quota allocations, and we have directed our field people to continue with that.
“We have increased the compensation of transport from Rarawai to Lautoka by an additional $15. For context, any cane coming from the eastern side of Rakiraki will get a subsidy of $45 per tonne.”
To Read more about Sugar Industry continue reading Agriinsite.com
Source : The Fiji Times
