A new sugar mill proposed by the Coalition Government for Rakiraki is facing challenges as it may be “very difficult to build purely on a commercial basis.” Nitya Reddy, chairman of the Fiji Sugar Corporation, made this statement acknowledging commitments from The People’s Alliance party and the National Federation Party to reinstate the mill in the area.
Reddy pointed out that there was previously optimism about improving the sugar industry, noting that Rakiraki produced up to 330,000 tonnes of cane in the past. However, production has significantly declined, with only 110,000 tonnes harvested this year.
He emphasized that constructing a new mill, estimated to cost between $125-$150 million, poses substantial commercial justification challenges. The Penang mill project is currently under serious evaluation by all stakeholders involved.
Reddy highlighted the long-term implications of establishing a new mill in Rakiraki, indicating the need for careful decision-making. The process includes thorough due diligence, with expectations of reaching a conclusion within the next six months.