Fiji’s Sugar Future: A Mill Dilemma or a Sweet Opportunity?

The Fiji Minister for the Sugar Industry, Charan Jeath Singh, has announced that plans for a new sugar mill in Rakiraki will require a significant investment of approximately $250 million. Singh has raised concerns about the financial viability of this project when considering that last year’s total sugar export earnings amounted to only $300 million. He emphasized that such an expenditure, compared to the current income from sugar exports, poses a challenging question about the return on investment.

Singh stated that for the Rakiraki mill to be sustainable, it would need a consistent delivery of at least 150 tonnes of sugarcane per hour. He highlighted the necessity of encouraging local farmers to establish new sugarcane plantations to ensure a sufficient supply, emphasizing that without adequate cane production, the construction of a new mill would not be justified.

In a shift of perspective, Singh mentioned the possibility of relocating the proposed mill to Ba instead. He disclosed that investors have suggested taking parts from the old Ba mill and building a new, flood-safe facility that could handle about 7,000 tonnes of sugarcane per day. This facility aims to source cane from surrounding areas, including Ba, Tavua, and Rakiraki.

Furthermore, Singh noted that the Cabinet has approved a report suggesting a potential joint venture with a Chinese company for this new venture, allowing the Fiji Sugar Corporation (FSC) to explore various options between independent construction and partnership.

These developments reflect ongoing discussions within Fiji’s sugar industry, which has faced considerable challenges, including declining production and an urgent need for modernization. In previous statements, Singh has indicated that acquiring a second-hand sugar mill from China could substantially reduce costs compared to a new mill while addressing the demand for locally refined sugar.

While the situation presents several hurdles, the focus on both revitalization efforts and strategic decisions represents an opportunity for growth and sustainability within Fiji’s sugar sector. With the government’s commitment to enhancing production and fostering local engagement, there is a hopeful outlook for the region’s agricultural prospects.