Cane production continues to fall short of the desired 2.5 million tonnes mark and shows a declining trend.
Sakiusa Tubuna, chairperson of the Standing Committee on Economic Affairs, stated this while presenting the consolidated review report of the Fiji Sugar Corporation’s (FSC) 2020-2023 annual reports in Parliament last week.
Mr. Tubuna highlighted the importance of the sugar industry to Fiji’s economy, noting that it contributed approximately 0.9 percent of GDP and accounted for 5.7 percent of domestic exports in 2022, based on provisional data from the Reserve Bank of Fiji.
He pointed out that over the review period, the committee observed a notable drop in cane production from 2020 to 2021, followed by a 16 percent increase from 2021 to 2022.
The committee identified several factors contributing to the decline in sugar production, including farmers’ lack of interest due to the perception that cane farming is unprofitable, inconsistent cane supply to mills leading to underutilization of mill capacity, decline in cane quality, absence of Key Performance Indicators (KPIs), and lack of strategic plans to forecast the corporation’s future targets and outputs.
The committee also noted FSC’s reliance on government grants for its operations, given its debt levels and recurring losses. It strongly recommended that the corporation develop proper KPIs for all sugar-related sectors to ensure the economic viability of the industry.