Outgoing Sugar Industry Minister Charan Jeath Singh has voiced concerns regarding the potential financial implications of extending the crushing date for cane growers. Singh highlighted that the profit-sharing formula, which allocates 30 percent to the Fiji Sugar Corporation (FSC) and 70 percent to farmers, means that both parties would bear the financial burden of keeping the mill operational.
The operational cost of the mill stands at approximately $50,000 per day, and Singh pointed out that extending the crushing date would lead to further losses for both growers and the FSC. He stated, “If we keep the mill open, then the cost would come from the sale of the sugar produced for that season,” indicating that on days when only a few trucks deliver cane, maintaining mill operations becomes financially unfeasible.
The Rarawai Sugar Mill officially closed on January 12, despite pleas from growers to prolong operations. Singh emphasized the reality that maintaining operations with insufficient cane deliveries would not be prudent, stating, “It does not make any sense,” and ultimately, a decision was made to cease operations.
Additionally, addressing concerns raised by political figures regarding the prevalence of stand over cane—cane that remains unharvested after the crushing season—Singh clarified that this is a common occurrence. He noted that the 2025 crushing season faced challenges, including labor shortages and adverse weather conditions, which hindered growers’ ability to harvest their cane.
Despite the setbacks, Singh remains optimistic about the future of the industry, emphasizing that efforts are underway to increase annual cane production by 200,000 tonnes. He acknowledged the difficulties posed by recent weather patterns while reaffirming the importance of proactive efforts by farmers to manage their production challenges.
Overall, Singh’s remarks convey a commitment to navigating the industry’s complexities while fostering a more fruitful partnership between the FSC and cane growers, aiming for a more sustainable future amidst ongoing challenges.
Leave a comment