Cane production remains below the desired level of 2.5 million tonnes and continues to show a declining trend.
Standing Committee on Economic Affairs chairperson Sakiusa Tubuna made this statement while presenting the consolidated review report of the Fiji Sugar Corporation’s (FSC) 2020-2023 annual reports in Parliament last week.
Mr. Tubuna said the sugar industry was crucial to Fiji’s economy, contributing about 0.9 percent of the GDP and generating 5.7 percent of domestic exports in 2022, according to provisional data from the Reserve Bank of Fiji.
Over the four years under review, the committee noted a significant decline in cane production from 2020 to 2021, followed by a 16 percent increase from 2021 to 2022.
The committee identified several factors that contributed to the decline in sugar production.
“These include the lack of interest by farmers who perceive cane farming as unprofitable, inconsistent cane supply to the mill resulting in underutilization of mill capacity, decline in cane quality, non-existence of KPIs, and non-renewal and absence of strategic plans to forecast the corporation’s future targets and outputs,” said Mr. Tubuna.
The committee also noted FSC’s reliance on government grants for its operation, given its debt levels and recurring losses.
However, the committee strongly suggested that the corporation develop proper KPIs for all sugar-related sectors to ensure the economic viability of the sector.