The Sugar Cane Growers Fund (SCGF) has announced a significant reduction in interest rates for all Business Link Pacific (BLP) loans, lowering the rate from 5% to 3.5%. This change, effective immediately, is designed to help Fijian cane farmers access necessary funds to diversify their income.
Initially launched on May 23, 2022, the BLP loan facility allows farmers to borrow between $1,000 to $30,000, contingent upon their cane production levels. An essential criterion for qualifying for these loans is that farmers must register and operate their farming activities as a business.
The concessional loan program has been facilitated by DT Global, the managing contractor for the Pacific SME Finance Facility Pilot program. Through this partnership, SCGF collaborates with the Ministry of Foreign Affairs and Trade (MFAT) of New Zealand to provide accessible wholesale capital to small and medium-sized enterprises (SMEs) within the sugarcane industry at favorable loan rates.
Raj Sharma, the CEO of SCGF, highlighted that while the actual interest rate is 4.5%, the additional 1% is subsidized by BLP, making borrowing even more advantageous for farmers. He expressed appreciation for BLP’s commitment not just to financial aid but also to enhancing the capacity-building efforts for SCGF and its beneficiaries.
As part of ongoing support, training sessions are being conducted in northern regions to improve farmers’ financial management skills. Vandhana Sharma, a BLP consultant from Thinkbiz, noted the positive grassroots understanding of finance among farmers but identified a need for additional training to enhance their financial management capabilities.
This initiative bodes well for the sugarcane farming community in Fiji, reflecting a proactive approach to improving financial accessibility and encouraging sustainable agricultural practices. Additionally, it reinforces the government’s dedication to supporting farmers, thereby fostering economic resilience within the sector.
In summary, the interest rate reduction and the accompanying training represent significant steps toward empowering Fijian cane farmers, ultimately nurturing both their livelihoods and the broader agricultural economy. This positive development provides a hopeful outlook for further growth and sustainability within the sugar industry in Fiji.
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