Cane farmers will soon be able to channel a portion of their cane payments into retirement savings after the Fiji National Provident Fund (FNPF) and the Sugar Cane Growers Fund (SCGF) signed a memorandum of understanding in Suva earlier this week.
Under the new voluntary arrangement, deductions can be made directly from cane proceeds to FNPF accounts, giving growers an easy way to build long-term savings. SCGF chief executive Raj Sharma described the MoU as “an important milestone” that introduces a scheme specifically designed to encourage growers to save for the future. He noted that of SCGF’s 4,301 customers, 1,248 — about 29 percent — are already FNPF members, and said the new facility would help more growers “save, getting them highest returns.”
The arrangement is flexible: farmers will be able to choose the frequency and amount of their contributions and can elect to apply deductions to all cane payments or selected ones. If a grower’s cane proceeds are insufficient for a scheduled deduction, the contribution will be processed from the next payment. SCGF emphasised the scheme is only available to growers whose accounts are not in default.
FNPF general manager Member Services Alipate Waqairawai said the partnership aligns with the Fund’s mandate to help Fijians accumulate retirement savings and provide support after retirement. “We’re now seeing more people working as farmers, small business owners, entrepreneurs and self-employed, and the Fund was adapting to those changes by expanding pathways for voluntary membership and savings,” he said, calling the collaboration “a critical milestone” for strengthening savings and financial literacy nationwide.
The project will roll out in phases. The first phase — funded in part by a grant from the United Nations Capital Development Fund (UNCDF) — focuses on savings, social security and insurance and is scheduled to begin at the end of the month, coinciding with the next cane payment cycle. A second phase, planned for mid-year, will introduce an overdraft facility for growers to access short-term credit.
SCGF said the new channel offers practical benefits for small-scale and self-employed growers who previously had limited options for consistent retirement saving. By embedding voluntary contributions into the existing cane payment process, the partners expect uptake to grow beyond the current 29 percent FNPF membership among SCGF customers.
The agreement arrives as the sugar sector continues to face operational pressures and financial uncertainty, prompting calls for measures that make farming more financially resilient. Industry stakeholders have in recent months focused on improving cashflow support and relief mechanisms for growers; the new savings pathway aims to complement those efforts by promoting long-term financial planning and literacy among cane farmers.
Implementation details, including enrollment procedures and communication to growers, will be finalised in coming weeks as the SCGF prepares for the end-of-month rollout. Both organisations have signalled ongoing cooperation to monitor participation and expand outreach so more cane growers can benefit from the voluntary savings option.
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