Calls have emerged for stronger support systems and improved access to finance for farmers, particularly those in the non-sugar agriculture sector. Raj Sharma, the Chief Executive of the Sugar Cane Growers Fund, highlighted at the Fiji Farmers Economic Summit that although agriculture remains a crucial pillar of Fiji’s economy, there is an urgent need for enhanced backing to sustain and grow the livelihoods of farmers.
Currently, only about 2.35 percent of the total loans issued within Fiji’s financial system are directed toward agriculture, despite the sector employing around one-third of the population either directly or indirectly. Sharma pointed to the stark reality that out of the total banking system, which amounts to approximately $11 billion, the agricultural sector only receives loans totaling around $261 million. This inequity underscores a significant gap in financial support that needs addressing to ensure the sector’s vitality.
Sharma is advocating for policymakers to implement expanded government guarantee schemes that simplify access to loans for farmers. He noted the crucial role lenders play in demanding security but emphasized that small and medium enterprises (SMEs) have benefited from such schemes and proposed that these be extended to the agricultural sector to bolster financial accessibility.
The call for enhanced financial input aligns with past discussions emphasizing modernizing farming practices and addressing challenges like market fluctuations, land lease costs, and climate challenges. The Permanent Secretary for Trade, Shaheen Ali, reaffirmed the government’s commitment to supporting the agricultural sector through various initiatives, suggesting a promising outlook for farmers aimed at improved productivity and sustainability.
This push for increased support and financial access is crucial as it indicates a focused effort to revitalize Fiji’s agricultural landscape. By fostering a more equitable distribution of financial resources and encouraging innovative farming practices, there is hope that the agriculture sector can flourish, ultimately ensuring food security and economic stability for generations to come.
Leave a comment