National Farmers Union criticises $5m fuel subsidy plan

The National Farmers Union (NFU) has criticised the Government's newly announced $5 million fuel subsidy for the sugar industry, arguing that the scheme could increase costs for farmers in remote cane-growing areas rather than reduce them.

NFU president Surendra Lal said the subsidy arrangement was not favourable for farmers in areas such as Seaqaqa, where growers would need to travel long distances to access fuel through the Fiji Sugar Corporation (FSC) mill in Labasa.

He said the initiative could place an additional financial burden on farmers, particularly those operating harvesters.

“This will be a cost burden for farmers, especially those based far from Labasa. It means a farmer with a harvester will have to hire a carrier just to take the machine to FSC to access fuel,” Mr Lal said.

He suggested fuel dispensing points should be established in Seaqaqa to reduce transport costs and travel time.

Mr Lal also questioned the practicality of the $2 per litre fuel subsidy, saying many farmers still did not understand how the scheme would operate.

“Farmers are still not aware of how this subsidy works. The $2 per litre will not be going to the growers but to the operators,” he said.

He also raised concerns about cane farmers who rely on tractors for cultivation, saying they would continue to face additional costs and that there was little clarity on whether rebates would apply to those activities.

Mr Lal further questioned why fuel prices had not fallen despite global market conditions and called for greater transparency and support throughout the crushing season.

Farmers seek answers on mill opening

Seaqaqa cane farmer Faiyaz Khan also expressed concern about delays in the opening of the FSC Labasa mill.

Mr Khan said farmers were still waiting for confirmation on when crushing operations would begin and warned that prolonged delays could affect harvested cane.

“What is FSC doing, what is the problem with FSC? Why are they not opening the mill?” he said.

He said farmers were already spending heavily on fuel to transport cane to Labasa.

“We are requesting if the Government can consider a rebate here in Seaqaqa. It will save our cost and time,” he said.

How the subsidy will work

The Ministry of Agriculture, Waterways and Sugar Industry says $5 million has been allocated from its 2025-2026 budget to subsidise fuel costs for cane harvesting and cartage activities.

According to the ministry:

• The subsidy will provide $2 per litre relief for eligible diesel use.
• It applies only to cane harvesting and cartage operations.
• The programme will run from June 20 to August 31, 2026, or until funds are exhausted.
• Eligible lorries, tractors, mechanical harvesters and locomotives must be registered with FSC and comply with Land Transport Authority requirements.
• The subsidy will be administered through FSC's existing payment systems.
• FSC and the Sugar Cane Growers Council will monitor the scheme to prevent misuse.
• FSC, the Sugar Industry Tribunal and the Sugar Cane Growers Council will jointly determine the distribution mechanism.

Agriculture, Waterways and Sugar Industry Minister Tomasi Tunabuna confirmed the subsidy's implementation period and eligibility requirements.

The ministry said the funding was reallocated from existing sugar and agriculture programmes and urged farmers, lorry operators and harvesters to commence cane harvesting and delivery as the season progresses.

It also reaffirmed its commitment to ensuring the long-term sustainability of the sugar industry.