Sugar Cane Growers Fund Invests in the Future: What’s Next for Farmers?

The Sugar Cane Growers Fund has recently expanded its investment portfolio with the acquisition of the HFC Building in Lautoka, a move that was highlighted by the Fund’s CEO, Raj Sharma. He announced this development during an appearance on The Lens@177, indicating that this step aligns with their strategy to diversify investments.

Mr. Sharma explained that subsequent to the purchase, the Fund conducted assessments to determine the rental amount, which directly benefits the farmers by compensating them appropriately. Reflecting on the Fund’s financial strategy, he noted a reduction in the interest rate from 6 percent to 4.5 percent, resulting in an approximate savings of half a million dollars that contributes to the farmers’ financial health.

He emphasized the importance of diversifying their financial undertakings for sustainability, reporting that the Fund manages a portfolio valued at around $23 million across various investment vehicles, including bonds and temporary deposits, alongside their subsidiary South Pacific Fertilizers. As of now, the Fund supports approximately 4,600 registered farmers with around 5,000 loan portfolios, indicating a significant commitment to the agricultural community.

Sharma provided insight into the Fund’s operational dynamics, stating that approximately 60 percent of their assets are connected to the cane industry. Their core business revolves around lending, which generates an estimated annual interest of about $1.6 million, allowing them to maintain necessary operating costs in the range of $1.3 million to $1.4 million.

The broader context of the Fund’s initiatives underlies a commitment to improve the financial landscape for farmers, enhance economic stability within the sugar industry, and promote responsible financial practices. The emphasis on supporting farmers through careful management and financial diversification signals a hopeful future for Fiji’s sugarcane farming sector. The Fund’s proactive approach demonstrates its dedication towards not only sustaining but also increasing resilience in the agricultural community despite ongoing challenges.