The sugar industry has faced a steady decline in both cane crushing and sugar output over the past five seasons, according to the Minister for Multi-Ethnic Affairs and Sugar Industry, Charan Jeath Singh. Despite these challenges, farmers have been shielded from drastic income fluctuations thanks to government-funded price top-ups, which have ensured they receive a minimum payment of $85 per tonne of sugarcane.
Singh reported that the amount of cane crushed dropped from 1.73 million tonnes in 2020 to 1.33 million tonnes in 2024, with sugar production decreasing from 151,591 tonnes to 126,522 tonnes during the same period. The ratio of tonnes of cane to tonnes of sugar has varied, showing improved performance in years such as 2021, 2022, and 2024, while seasons like 2020 and 2023 performed poorly.
The Minister highlighted that cane quality is a significant concern, particularly due to the dominance of the Mana variety, which constitutes nearly 90% of the cane grown in Viti Levu. This mid-to-late maturity crop has low sucrose levels at the beginning of the season, coinciding with high levels of cane burning. This practice exacerbates issues with purity and increases cut-to-crush delays, further reducing the amount of recoverable sugar. Additionally, the industry is grappling with an ageing ratoon population, insufficient fertilizer use, and declining soil quality, all of which are contributing to lower yields.
On a positive note, despite local production challenges, global market conditions have resulted in increased returns for Fiji’s sugar over key years. Export prices surged from $737 per tonne in 2021 to a peak of $1,485 in 2023 before declining slightly to $1,088 in 2024, which still remains significantly higher than the prices in 2020 and 2021. This price hike has been driven by global shortages, heightened ethanol production, and growing international demand for raw sugar.
The government’s intervention was crucial in addressing lower payments caused by deductions in the 2020 and 2021 seasons, leading to top-ups for farmers amounting to $24.92 in 2020, $13.65 in 2021, $5.00 in 2022, $1.43 in 2023, and $13.27 in 2024. Thanks to these contributions, farmers have achieved earnings exceeding the minimum guarantee, supported by robust global prices.
Minister Singh emphasized that despite ongoing production difficulties, the Ministry, Fiji Sugar Corporation, and industry stakeholders are dedicated to enhancing productivity and ensuring long-term sustainability in the sugar sector. This collaborative effort is aimed at overcoming current challenges and paving the way for a more resilient future for Fiji’s sugarcane farmers.
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