Parliament has approved a motion to raise the government guarantee limit for Fiji Sugar Corporation (FSC) borrowings from $95 million to $200 million, covering the period from August 1, 2022, to May 31, 2028. Additionally, the FSC will be exempt from paying the guarantee fee.
Finance Minister Professor Biman Prasad highlighted the financial challenges facing the FSC, noting that the government is already liable for $293 million in guaranteed debts from both domestic and international sources. He emphasized the importance of collaborating with the FSC to manage any fiscal risks and ensure timely communication regarding potential issues to implement mitigation strategies.
While opposition members supported the motion, they voiced concerns. MP Semi Koroilavesau pointed out that large areas of land previously used for sugarcane farming now remain unused. He stressed that simply increasing funding for the FSC is not a viable solution and called for greater accountability from the corporation’s management, along with a strategic plan for operational enhancements and addressing broader challenges in the sugar industry.
Another MP, Viam Pillay, urged the government to investigate ongoing mill breakdown issues, which significantly impact farmers and transportation drivers. He questioned the efficacy of the loan guarantee if mill breakdowns remain unresolved, noting that these problems have resulted in delays in harvesting, causing financial strain on farmers and others in the industry.
Pillay suggested that a joint Parliamentary Select Committee be established to thoroughly investigate the current state of the sugar industry while expressing support for the government guarantee motion.