Fiji’s Sugar Industry Gets a Boost: Inside the 2024-2025 Budget Allocation

Minister for Multi-Ethnic Affairs and Sugar Industry, Charan Jeath Singh, praised the 2024-2025 budget allocation for his Ministry while addressing Parliament. Singh described the budget as a driving force for Fiji’s development and growth, focusing on sustainability, competitiveness, and the overall well-being of the nation.

Discussing the sugar industry, Singh highlighted an increased budget of $70.1 million aimed at enhancing service delivery to farmers through the Ministry’s capital programs. He emphasized the importance of the $4 million allocated to the sugar stabilization fund, which aims to address price stability and ensure favorable cane prices for farmers.

The Sugarcane Development and Farmers Assistance Program, with a budget of $4 million, aims to boost farm productivity through planting and replanting initiatives. The Farm Incentive Program, allocated $1 million, will reward farmers who increase cane production, offering $5 for every additional ton of cane produced in comparison to the previous season.

To tackle cane transportation issues, Singh noted the Ministry has earmarked $4 million for the Cane Access Road Program, which will facilitate the repair of over 3,000 roads, culverts, and crossings. Additionally, $1 million has been allocated for the provision of cane cage-bins, expected to produce over 40 such bins to transport mechanically harvested cane via the rail network, the cheapest mode of transport to mills.

Addressing labor shortages, Singh outlined mechanization initiatives supported by a $500,000 budget and increased subsidies under the Manual Harvesting Support Program, which now offers $3 per ton, totaling $3 million for the program. The Ministry will continue collaborations with Fiji Corrections Services for manual harvesting support, with a budget of $320,000.

To alleviate financial burdens on farmers, the Fertilizer Subsidy Program will continue with a $20 million allocation, providing fertilizers at $20 per bag. Additionally, weedicide subsidies are allocated $1 million, and $4.9 million will go to subsidize cartage costs for Penang farmers.

A $1 million fund will assist farmers whose leases are expiring or those wishing to purchase land for cane farming, offering a 30% subsidy or up to $7,500, whichever is lower. Another $5.5 million is allocated to the Drainage Program to mitigate the impact of climate change on sugarcane farms.

Lastly, Singh announced a new $15 million working capital support allocation for the Fiji Sugar Corporation (FSC) to stabilize operations and meet financial obligations for the EXIM bank loan.

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