The government has made a significant announcement regarding the price of sugarcane, setting it at a record-high of $105 per tonne for the 2025-2026 National Budget. This new figure represents an increase of $20 over the previously guaranteed price of $85 and surpasses last year’s price of $91.38 per tonne. Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, stated that this price adjustment aims to enhance farmers’ earnings and stimulate rural communities.
In his address, Prof. Prasad pointed out that this consistent rise in sugar prices is expected to generate renewed interest in the sugar industry, leading to a projected increase in sugarcane production. To support this initiative, the government has allocated $72 million towards essential resources such as fertilizer, herbicides, sugar price supports, transportation subsidies, and improvements to cane access roads.
The Deputy Prime Minister emphasized that the sugar industry is a livelihood for nearly 200,000 individuals in Fiji. While financial support is crucial, he acknowledged that the challenges facing the industry cannot be resolved by funding alone. Addressing the ongoing issues related to natural disasters and past government interventions, he announced plans to create a special parliamentary committee on sugar, led by the Prime Minister, to oversee efforts for recovery and growth in the sector.
This announcement comes amid ongoing discussions about the sustainability of the sugar industry, with recent criticisms indicating that despite high global sugar prices, local production levels are declining. Opposition MP Viam Pillay pointed out that the current prices may not represent a genuine uplift in productivity, but rather reflect global market conditions.
Nonetheless, the government’s commitment to revitalizing the sugar sector, through not only price support but also strategic investments in infrastructure and production, offers a hopeful outlook for the industry. Continued collaboration among various stakeholders, including farmers and government officials, is essential to foster resilience and ensure the long-term sustainability of Fiji’s sugarcane production, which is vital for many local communities.
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