Business consultant proposes farmer-owned sugar industry

Business consultant Sandeep Singh says Fiji’s sugar industry needs urgent structural reform through privatisation and farmer ownership if it is to survive.

Mr Singh, said the industry’s long-term survival depended on structural reform rather than annual disputes over cane prices or continued taxpayer-funded subsidies.

“My proposal is to privatise the industry through a partnership that gives farmers an ownership stake,” he said.

“Farmers should own shares in the sugar mills through a public-private partnership. Farmers would then have a voice in the industry and benefit from its success.”

“The Fiji National Provident Fund (FNPF) could also invest; FNPF can take a stake, and what will happen if FNPF takes a stake? The farmers can also contribute to FNPF, and that’s good for their future.”

He said the focus should shift away from yearly arguments over cane prices and political contests and instead towards building a modern, diversified industry that benefits farmers and the country.

Mr Singh said Fiji should diversify into higher-value products such as ethanol and rum, rather than relying solely on raw sugar exports.

“Countries such as Brazil and Mauritius have diversified their industries,” he said.

“They produce ethanol, rum, specialty sugars, paper products and other goods from sugarcane, and farmers benefit because they share in the value of the entire supply chain.”

He said the Fiji Sugar Corporation’s (FSC) ageing mills, poor efficiency and delays in cane processing remained major challenges, while low global sugar prices continued to limit returns.

Mr Singh said the ongoing debate over cane prices ignored the industry’s deeper structural problems.

“With elections approaching, some people are trying to gain political support by presenting themselves as saviours of farmers,” he said.

“The reality is that those now criticising the industry were part of it. They were in Government in previous years. They had opportunities to improve it but failed.

“People say this is not about politics, yet many of the statements are being issued through political Facebook pages.”

Mr Singh said calls for higher cane prices did not address the industry’s underlying issues.

“The real issue is fixing FSC. Whether that means building a new sugar mill or changing the board if it cannot run the industry effectively, those are the real issues that need to be addressed,” he said.

He said taxpayers had supported the sugar industry for more than two decades, and reforms should focus on long-term sustainability rather than political debate.

Mr Singh has confirmed he would contest the upcoming General Election and would launch his political party affiliation today.