The Sugar Minister of Fiji, Charan Jeath Singh, has expressed concerns about the financial impacts of sugar mill shutdowns, revealing that a single day of halted operations can cost a mill over $100,000. He emphasized the importance of continuous operations, stating that disruptions not only affect the Fiji Sugar Corporation (FSC) but also have a significant negative effect on farmers. Under the existing Master Award agreement, farmers account for 70% of the sugar proceeds, leaving them particularly vulnerable during mill closures.
Minister Singh shared insights regarding the expected harvest of 1.5 million tonnes of cane in the upcoming season, predicting a sugar production rate of approximately 150,000 tonnes valued at around $150 million. He highlighted that while necessary repairs at the mills have been completed, he could not guarantee that breakdowns wouldn’t occur since they involve machinery.
Additionally, Singh mentioned ongoing government reviews of the Master Award, with potential shifts towards quality-based payments rather than the current weight-based payments for sugar canes. He encouraged farmers to capitalize on the favorable dry weather following the rainy season to maximize their harvest.
This call for action aligns with previous discussions about the industry facing challenges in production efficiency and the economic strain caused by mill interruptions. The government acknowledges the need for improvements and has committed to supporting farmers and enhancing operational practices within the sugar sector, which is vital for Fiji’s economy.
Despite the challenges, there is a growing optimism as the government actively works on addressing operational inefficiencies and securing the financial viability of the sugar industry. Such efforts could potentially lead to a healthier future for both the farmers and the sugar mills, paving the way for sustainable growth in the sector.
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