Fiji’s Sugar Cane Farmers Get a Boost with New Loan Rate Cut!

The Sugar Cane Growers Fund (SCGF) has made an important announcement, reducing interest rates for all Business Link Pacific (BLP) loans from 5% to 3.5%. This immediate change aims to provide Fijian cane farmers with easier access to funds, which will help them diversify their income sources.

The BLP loan facility, which began on May 23, 2022, offers loans ranging from $1,000 to $30,000 based on the farmer’s cane production levels. A key requirement for farmers is to register and treat their farming activities as a business in order to qualify for these loans.

This concessional loan program is managed by DT Global, which oversees the Pacific SME Finance Facility Pilot program. The SCGF works alongside New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) to provide small and medium-sized enterprises (SMEs) in the sugarcane industry with affordable capital.

Raj Sharma, SCGF’s CEO, emphasized that while the actual interest rate is 4.5%, the additional 1% is subsidized by BLP, making it even more beneficial for farmers. He acknowledged BLP’s commitment not only to providing financial support but also to developing capacity-building initiatives for SCGF and its beneficiaries.

As part of ongoing support efforts, training sessions are being organized in northern regions to enhance farmers’ financial management skills. Vandhana Sharma, a BLP consultant from Thinkbiz, highlighted the farmers’ growing financial understanding but also noted the necessity for further education to boost their financial management abilities.

This initiative signifies robust support for Fiji’s sugarcane farming community, showcasing a proactive approach to increasing financial accessibility and promoting sustainable agricultural practices. It also reflects the government’s commitment to supporting farmers, thereby contributing to economic resilience in the sector.

This positive development not only empowers Fijian cane farmers but also fosters the growth and sustainability of the agricultural economy as a whole. The lower interest rates and additional training represent meaningful progress toward nurturing better livelihoods for farmers while enhancing the prospects for the sugar industry in Fiji.