Fiji : sugar mill stoppages cost $100k
Fiji’s Sugar Minister Charan Jeath Singh says mill shutdowns can cost over \$100,000 daily, hurting both the Fiji Sugar Corporation and farmers. Under the Master Award, farmers receive 70% of proceeds. The government plans to shift to quality-based payments. With 1.5 million tonnes of cane, sugar output could reach 150,000 tonnes, worth about \$150 million.
SUGAR Minister Charan Jeath Singh says a sugar mill can lose more than $100,000 in day if it stops operating.
“Once the mill starts running, it’s only good that it continues to run, because the stop-start really costs a lot of money to the industry,” Mr Singh said.
He said mill shutdowns don’t only impact the Fiji Sugar Corporation (FSC), but also hurt farmers.
Under the Master Award, he said the sugar industry shared 30 percent of its proceeds, while farmers receive 70 percent.
“So when the mill closes, it doesn’t only affect FSC, it also hurts the pockets of the farmers.”
He said the Government was also reviewing the Master Award to introduce quality-based payments instead of the current weight-based system.
On production, he said if 1.5 million tonnes of cane were expected to be harvested, the country could produce 150,000 tonnes of sugar valued at around $150million.
He said all necessary repairs identified by FSC teams had been completed, but cautioned that breakdowns could still occur.
“I can’t say 100 per cent that everything is going to be right, because it’s machinery. But FSC has done its part.”
He urged farmers to take advantage of the dry weather now that the rainy season had passed.
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Source : The Fiji Times
