Fiji : Farmers will not harvest until cane price rises to $110 – Chaudhry
Fiji cane farmers refuse to resume harvesting until the guaranteed cane price rises from $85 to $110 per tonne. While the Sugar Cane Growers Fund urges harvesting and cites subsidies and support measures, farmers argue current prices make production economically unviable.
As the Sugar Cane Growers Fund urges farmers to continue harvesting and take advantage of the support measures put in place for the industry, National Farmers Union General Secretary Mahendra Chaudhry says farmers will not resume harvesting until the delivery payment is increased and the minimum guaranteed cane price is raised from $85 to $110 per tonne.
While responding to questions from fijivillage News, Mahendra Chaudhry says this is a decision farmers have taken independently, adding that he has held meetings in all cane-growing districts and that this reflects the voice of the farmers.
He says the the Sugarcane Growers Fund has no business telling the farmers what to do as the Fund is owned by the farmers and they should be working in the interest of the farmers rather than telling them to cut at a loss.
Chaudhry says in so far as the question of $5 million of fuel subsidy which the government has announced, farmers get nothing out of that and it is only for lorry operators, harvest operators, and truck operators.
He says these organizations have rejected this subsidy as a pittancy and has too many conditions attached to it.
When questioned on the impact on the farmers if they do not harvest their cane, Chaudhry says it is not the farmers who are to blame for the decline in the industry, it is the Fiji Sugar Corporation who have run the corporation to the ground and they still continue to be there.
While responding to criticisms that the issue is being politicised as he is also the leader of the Fiji Labour Party, Chaudhry says there is no politics in this, adding that this is an economic issue.
The FLP leader stresses that decisions have been taken by the farmers themselves, and has been endorsed in every meeting that he has held in the Western Division and Labasa.
He says he has been with the National Farmers Union since, 1978, which was before the Fiji Labour Party was established.
Chaudhry also questioned the delay for the Parliamentary Special Committee on the Sugar Industry’s report which was due in November last year.
While welcoming the additional assistance provided by Government, Sugar Cane Growers Fund CEO Raj Sharma says the past few weeks had been challenging as stakeholders and Government worked together to find practical solutions to support growers and sustain the industry.
He says the Government has its own fiscal constraints, yet it has once again demonstrated its commitment to the sugar industry.
Sharma says the Fund has also stepped in where possible to provide interim financial support, directly or indirectly, to growers or the industry during this difficult harvesting period.
He says global sugar prices have fallen significantly and are now almost half of previous levels, while fuel and operating costs remain high.
Sharma says despite these challenges, Government has maintained a guaranteed cane price of $85 per tonne, a level of support not available to many other agricultural sectors.
He says that during consultations held by the Ministry throughout the cane belt areas, growers consistently requested an assurance of the guaranteed cane price and assistance with rising fuel costs affecting harvesting and transportation.
The CEO says they acknowledge Government’s response through this fuel subsidy, which will provide much-needed relief to growers and contractors.
Sharma says the industry continues to face several structural challenges and reform initiatives and the Fund has actively participated in these discussions and proactively taken action for growers and the industry, including making submissions on issues such as land leases and industry sustainability.
He also highlighted that the Fund remains committed to improving growers’ livelihoods through innovative products and services where over the past 24 months, they have reduced lending interest rates from 6 percent to 3.95 percent through diversification initiatives and prudent financial management.
Sharma says the Fund had foreseen the current circumstances and the Board had taken several decisive decisions over the last two years to reduce the burden on growers, including the payment of Mortgage Protection Insurance cover.
Sharma is urging the Fund’s more than 4,000 grower-customers to prepare for and commence harvesting.
He notes that some harvester operators are also awaiting the outcome of the FCCC price review.
The CEO stresses the industry is facing difficult times, but now is the time for all stakeholders to work together and peak harvesting period is already underway, and delays will only increase costs for growers, particularly as the rainy season approaches.
He says although fuel prices may ease in the coming months, the ongoing uncertainty arising from the US-Iran conflict means the industry cannot afford to wait and see, and all stakeholders must remain vigilant and proceed with harvesting.
He notes that failure to harvest cane on time could adversely affect industry production targets, export commitments and market opportunities.
Sharma stresses that most importantly, it could impact growers’ ability to meet their loan repayment obligations to SCGF.
He says that a number of growers had already failed to complete their harvests last season due to operational challenges and milling disruptions, particularly following issues at the Rarawai Mill.
He further revealed that approximately $5 million of the Fund’s $37 million loan portfolio relates to growers whose production fell below 50 tonnes.
Sharma says these accounts are being closely monitored, and the Fund is working with affected growers to address the challenges and support their continued participation in the industry.
Sharma adds the Fund remains committed to supporting growers and the industry in the best possible way.
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Source : Fiji Village
