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Drought Dilemma: Fiji’s Sugar Shipments at Risk

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Prolonged drought conditions caused by the El Nino phenomenon have severely affected the production of the 2024 cane crop, leading the Fiji Sugar Corporation (FSC) to announce that it might be unable to fulfill one of its shipment commitments. The FSC had committed to shipping approximately 84,000 tonnes of sugar, which includes a shipment to the US and two to a refiner in Korea.

FSC’s chief executive officer, Bhan Pratap Singh, noted that the company also pledged to supply around 35,000 tonnes of sugar to local and regional markets. However, he revealed that the fourth shipment now seems unlikely, as the anticipated sugar volume has been downgraded from an initial estimate of 153,021 tonnes to 121,272 tonnes.

Initially, in November 2023, the forecast predicted cane production would reach 1.51 million tonnes for 2024. However, the ongoing drought has led to a revised projection of 1.30 million tonnes as of August 2024. Singh highlighted that the drought’s effects extend beyond the 2024 crop, posing risks to the 2025 season due to inadequate planting during the critical months from March to July and poor establishment of ratoon crops.

Even with the possibility of rainfall in the coming months, the risk of late planting and reduced productivity remains a major concern. Singh assured that the FSC is closely monitoring the situation and is dedicated to supporting farmers during these difficult times, while also looking for ways to mitigate the impact of future droughts on upcoming crops.

The FSC reported significant decreases in rainfall at its mills from October to December of the previous year, with the Lautoka mill experiencing an 82 percent decline, the Rarawai mill facing an 87 percent reduction, and Labasa seeing a 59 percent drop. Singh indicated that these substantial rainfall deficits resulted in a 20 percent decrease in crop output at the mills on Viti Levu, along with a 4 percent decline at the Labasa mill.

As of Monday, August 12, 2024, the Lautoka mill crushed 208,768 tonnes of cane, producing 16,066 tonnes of sugar; Rarawai processed 153,564 tonnes of cane to yield 13,677 tonnes of sugar; and Labasa crushed 239,388 tonnes of cane, resulting in 23,796 tonnes of sugar.

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