The Fiji Sugar Corporation (FSC) sold nine of its most valuable properties, spanning 633 acres, for just over $250 million between 2019 and 2020. FSC Chairman Nitya Reddy stated that the sale price was significantly undervalued for such high-demand urban properties. The lands, which included valuable port infrastructure, were sold for an average of only $101 per square meter, with one parcel fetching a mere $50 per square meter.
Reddy highlighted that the sale of these properties occurred under the previous government and management, with no objections raised by the government or industry stakeholders. He emphasized that these transactions allowed external parties to profit privately from the resources that could have benefited the local industry.
In contrast, since 2023, FSC has made a commitment to manage its assets more directly by ensuring that any divestment supports the sugar industry. Over the past two years, the corporation has sold just two properties, totaling around 10 acres, exclusively to industry-related stakeholders. These recent sales include binding agreements requiring the new owners to reinvest benefits back into the industry and granting FSC rights of first refusal on any future transactions.
Reddy noted that the financial arrangements with current stakeholders, like a debt swap involving South Pacific Fertilizer Ltd. with the Lautoka Bowling Club, have been significantly more beneficial than those seen in earlier sales. This proactive approach indicates that FSC is focusing on sustainable practices and prioritizing the welfare of the sugar industry moving forward.
The long-term vision of the FSC underlines its commitment to revitalizing the sugar sector and addressing financial and operational challenges highlighted by past sales decisions. This renewed focus could potentially redirect profits back to local stakeholders, ensuring the longevity and prosperity of Fiji’s key agricultural sector.
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