Sugarcane farmers across Fiji received their third cane payment of $10.91 per tonne yesterday — a disbursement made three days ahead of the previously scheduled date — the Fiji Sugar Corporation (FSC) confirmed. Chairman Nitya Reddy said the payment fully complies with FSC’s obligations under the Master Award and included a substantial government top-up that bridged the gap between the realised sugar price and the agreed cane rate.
“The payment includes a government top-up of $10.07, over and above the actual realised price of $0.84 per tonne,” Reddy said, underlining that the $0.84 per tonne reflects the price FSC obtained for sugar. He also stressed the payment’s timing, noting it was processed earlier than planned to provide farmers with faster access to cash during a challenging period for the industry.
In an unprecedented move, FSC has added $7.38 million from its own funds to this round of payments. “Despite its highly stressed liquidity position, FSC is directly contributing $7.38 million from its own funds towards this payment,” Reddy said. He described the contribution as a historic step by the corporation — the first time it has exceeded its contractual obligations under the Master Award — and said the gesture was made “in recognition of the hardships faced by canefarmers.”
The breakdown means farmers received the $0.84 per tonne realised through sugar sales alongside a government-funded top-up of $10.07, bringing the total to $10.91 per tonne. FSC’s additional $7.38 million suggests the corporation absorbed part of the fiscal load to expedite payments and lessen immediate financial strain on growers, even as it contends with limited liquidity.
The payment arrives against a backdrop of heightened pressure on the sector. In recent months the industry has grappled with crop damage from pre-season fires, a major blaze at the Rarawai mill that forced cane to be diverted and prompted a temporary $15-per-tonne compensation for redirected cane, and calls from the National Farmers Union for compensation for standover cane left unharvested at the end of the 2025 crushing season. The union previously estimated as much as 85,000 tonnes of cane remained in fields after the season ended and urged urgent clarity on compensation levels, proposing $35 per tonne as a benchmark for growers left with unharvested cane.
Industry observers said the early payment and FSC’s extraordinary top-up may provide short-term relief for many smallholders still recovering from fires, mill disruptions and the season’s aftermath. However, questions remain about whether FSC can sustain such contributions if low sugar prices and operational setbacks persist, and how long the government will continue to top up realised prices at current levels.
The third payment is the latest development in a series of government and industry interventions this year aimed at stabilising incomes for cane farmers. Officials and grower representatives will be watching closely for announcements on compensation for unharvested cane and any further measures to shore up the sector ahead of the next planting and crushing cycles.
Leave a comment