Limited access to credit remains a significant barrier hindering progress in Fiji’s agriculture sector, according to Raj Sharma, CEO of the Sugar Cane Growers Fund. Financial institutions, he explains, are neglecting both sugar and non-sugar farmers, which is concerning given that agriculture supports over 300,000 livelihoods in the country.
Sharma highlighted that agriculture is not recognized as a serious business, despite its essential role in food security and the overall economy. Presently, less than three percent of the nation’s total loan portfolio is allocated to agriculture, falling short of the banking sector’s recommended minimum of four percent. Currently, only 2.35 percent of loans are directed towards this vital sector.
Farmers are grappling with various challenges, including fluctuating market prices, aging labor, high land lease costs, and adverse climate conditions. While sugar farmers benefit from a government-backed guaranteed price scheme, non-sugar farmers struggle without such financial support. The Fund is calling for immediate action from the government and banks, proposing measures such as zero-interest loans, expanded insurance options, and investments in modern agricultural technologies.
These initiatives are critical to protect farmers’ livelihoods and to foster a resilient agricultural future for Fiji. Notably, Sharma’s concerns echo sentiments expressed during previous discussions, emphasizing the urgent need for strategic reforms and innovative collaborations to enhance the agricultural landscape.
The broader context indicates a growing recognition of the importance of modernizing farming practices, ensuring financial support, and engaging younger generations in agriculture. Encouragingly, there is hope that through strategic investments and collaborative efforts, Fiji’s agriculture sector may experience revitalization, ultimately playing an integral role in the nation’s economy for years to come.
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