The production of sugarcane in Fiji has dropped below the target level of 2.5 million tonnes and continues to decline. This is a concerning trend given that sugarcane farming once formed the backbone of Fiji’s economy, directly supporting thousands of families involved in farming and many more in related industries.
Sakiusa Tubuna, Chairperson of the Standing Committee on Economic Affairs, highlighted this issue while presenting a review report on the Fiji Sugar Corporation’s (FSC) 2020-2023 annual reports to Parliament. He stated that the sugar industry is vital to Fiji’s economy, contributing approximately 0.9% of the GDP and generating 5.7% of domestic exports in 2022, based on provisional data from the Reserve Bank of Fiji.
The committee observed a significant decline in cane production from 2020 to 2021, with a 16% rebound from 2021 to 2022. Several factors were identified as contributing to this decline, including farmers’ lack of interest due to perceived unprofitability, inconsistent cane supply to mills, declining cane quality, the absence of key performance indicators (KPIs), and a lack of strategic plans for future targets and outputs.
The FSC’s reliance on government grants due to high debt levels and recurring losses was also noted. In June, the committee expressed concerns over the decrease in sugar cane production despite available funds from the Sugar Cane Growers Fund and the Sugar Ministry’s assistance to support the FSC’s efforts.
The report emphasized that increasing production requires coordinated efforts and collaboration among key agencies. The need for a comprehensive sugar policy was highlighted to ensure industry stakeholders are well-informed about future strategies and policy directions.
It was noted that sugarcane farmers would receive a promising $101.08 per tonne for the 2023 season, up from $91.38 per tonne in 2022, exceeding the industry benchmark of $85 per tonne.
Despite the industry’s historical significance and past economic importance, it faced challenges after the expiration of preferential prices under the European Union’s Lome Convention. The report called on relevant authorities to provide incentives to motivate farmers to increase production and address complex issues within the industry, including transportation, production, and land sale dynamics.
The key questions remain: how to motivate farmers to produce more and how to address the interests of landowners effectively. The report concluded with a call for political will to uphold commitments and make impactful changes in the sugar industry.