The Sugar Cane Growers Fund has made a strategic move to broaden its investment portfolio by acquiring the HFC Building in Lautoka. This announcement was made by CEO Raj Sharma during an episode of The Lens@177, emphasizing the initiative as a part of the Fund’s strategy to diversify its investments.
Following the acquisition, the Fund performed evaluations to establish rental rates that would ultimately benefit farmers through fair compensation. Sharma highlighted a significant reduction in interest rates from 6 percent to 4.5 percent, which translates to savings of nearly half a million dollars aimed at enhancing the financial wellbeing of the farmers they support.
Sharma pointed out the importance of diversification for the sustainability of their operations, reporting that the Fund oversees a portfolio valued at approximately $23 million, which includes investments in bonds, temporary deposits, and its subsidiary, South Pacific Fertilizers. Currently, the Fund serves about 4,600 registered farmers who collectively hold around 5,000 loan portfolios, showcasing its strong commitment to the agricultural sector.
Financially, the Fund maintains that around 60 percent of their assets are tied to the cane industry. Their primary business revolves around lending, producing an estimated annual interest income of about $1.6 million, which is vital for covering their operational costs estimated between $1.3 million to $1.4 million.
The initiatives taken by the Fund reflect a commitment to not only improving the financial landscape for farmers but also strengthening economic stability in the sugar industry and encouraging responsible financial management. The focus on managing investments wisely and fostering diversification brings a hopeful aspect to the future of Fiji’s sugarcane sector, underscoring the Fund’s dedication to sustaining and enhancing resilience amidst ongoing challenges in agriculture.
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