The final cane payment announcement of $0.71 per tonne to farmers has brought the growers’ share of the proceeds from the 2014 season to $129.9 million.

But the payment, which is usually referred to as wash-up payment, raised a few claims that the amount is too low.

However, Fiji Sugar Corporation executive chairman, Abdul Khan, said the wash-up amount was not really a true reflection of the total amount paid.

In fact, he said this was the case because their forecast had been more accurate the past year in terms of payment.

“The fourth cane payment is the final cane payment. This was not a cane payment but rather a wash-up,” he said.

“We call that reconciliation. So when all the funds are reconciled, that is the amount we come up with.”

Mr Khan said they have been able to pay farmers just over $80 per tonne in the 2014 season.

“This was after we topped up the last cane payment which was the forth cane payment by $7 per tonne,” he said.

2013 season exception

Mr Khan said the problem was a number of the farmers and industry people were comparing it to a year ago when they made a wash up payment of $6 per tonne.

“That was the case because we were able to produce more sugar than what was originally forecast,” he said.

“The mills were working very well and our initial forecast was exceeding and because of that we were able to make that payment.

“So we sold the sugar and the money which we got from there, we gave it to farmers.

“So last year we knew our mills were operating as well as 2013 so we were able to forecast more accurately and because of that the wash-up payment is lower.”

Mr Khan stressed people also need to keep in mind is that there is significant reduction in world price of sugar.

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