Sugarcane growers will soon be able to funnel part of their cane proceeds directly into their Fiji National Provident Fund (FNPF) accounts, after the Fund and the Sugar Cane Growers Fund (SCGF) signed a Memorandum of Understanding to establish a voluntary savings scheme. The arrangement, announced this week by SCGF chief executive Raj Sharma, is designed to make it easier for growers to build retirement savings by deducting agreed contributions from payments for cane.
Sharma described the partnership as “a milestone” for both the SCGF and growers, noting the scale of the opportunity: the SCGF has 4,301 customers, of whom 1,248 are already FNPF members — roughly 29 percent. He said the new scheme will allow more growers to save while benefiting from the long-term returns generated by the Fund. Participation will be entirely voluntary and subject to eligibility checks.
Under the agreement, contributions will be deducted from a grower’s share of cane proceeds only after any outstanding SCGF loan repayments have been settled. The deduction facility will apply solely to accounts not in default, Sharma said, ensuring that growers’ credit obligations are prioritised before superannuation contributions are taken. The SCGF expects the mechanism to be in place by the end of the month and rolled out alongside the next cane payment cycle.
FNPF general manager of member services Alipate Waqairawai said the collaboration aligns with the Fund’s long-standing mandate to help Fijians accumulate retirement savings and provide financial support after retirement. He framed the initiative as a practical way to extend retirement coverage into the sugar sector, where irregular income and loan commitments can make regular saving difficult for many smallholders.
The scheme follows other recent SCGF measures aimed at cushioning growers during shocks to the sector. In recent months the fund has provided relief efforts and loan fee waivers for farmers affected when the Rarawai Mill in Ba was disrupted by fire, demonstrating its role beyond credit provision. The new FNPF deductions add a savings dimension to the SCGF’s suite of services and could help smooth the transition from seasonal incomes to steadier long-term savings discipline.
For growers, the immediate appeal is administrative simplicity: contributions collected at source remove the need for separate transfers to FNPF accounts. For policymakers and sector stakeholders, the initiative addresses a broader challenge in Fiji’s sugar industry — improving farm-level financial resilience and ensuring that workers and growers accrue retirement entitlements despite the sector’s cycles of disruption and recovery.
Implementation details such as minimum contribution levels, opt-in procedures, and how growers will be informed about the scheme were not detailed in the announcement. SCGF and FNPF officials said they will provide further information to growers ahead of the rollout with the next payment run.
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