The CEO of the Sugar Cane Growers Fund, Raj Sharma, has revealed that the fund currently holds loan portfolios totaling approximately $33 million, primarily from around 4,600 registered cane farmers in Fiji. During an interview on The Fiji Times’ online platform, Sharma emphasized that the demographics of the farmers indicate a significant age range, with most between 35 to 55 years, though some are as old as 100.
Out of the total loan amount, about $4 million accounts for corporate loans, with a significant portion of the portfolio—60%—backed by the cane industry itself. Notably, the majority of the farmers involved are male, comprising 92% of the total, with female participation at just 8%.
Sharma also detailed that 33% of the loan portfolios are concentrated in the Northern Division, while 66% are situated within the Western Division, which includes key areas like Labasa and Ba. He maintained that the core business of the fund is lending, noting an annual interest income of about $1.6 million from these loans. The operational costs for the fund are estimated to be between $1.3 million and $1.4 million, primarily for staffing and office facilities.
The discussion of the financial landscape for farmers also brings to light previous reports on loan management within the industry. For instance, a recent effort to support farmers includes a deferment option for loan repayments, aimed at providing financial relief and encouraging responsible expenditure of returned funds during challenging economic conditions. The active engagement between the Sugar Cane Growers Fund and various stakeholders, including government entities, underscores a commitment to fostering financial stability among cane farmers.
Moreover, these initiatives reflect a broader strategy to enhance the sustainability of the sugar industry in Fiji, promoting healthier financial practices among farmers while paving the way for a future that can potentially see increased productivity and economic resilience within the sector.
Overall, this development presents a positive outlook for the future of sugarcane farming in Fiji, illustrating the fund’s dedication to improving financial conditions for farmers and ensuring the longevity of the industry in face of challenges.
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