Cabinet to consider fuel subsidy for cane sector

A fuel subsidy proposal for sugarcane truck drivers and mechanical harvester operators has been submitted to Cabinet for approval, Agriculture Minister Tomasi Tunabuna told Parliament yesterday.

Mr Tunabuna made the announcement while responding to a question from Opposition MP Viam Pillay on whether Government planned to offer fuel rebates to registered sugarcane truck drivers and mechanical harvester operators affected by rising diesel prices ahead of the 2026 crushing season.

“The Ministry has helped prepare and submit a proposal to Cabinet, seeking approval for a reasonable fuel subsidy to support sugarcane harvesting and transportation,” Mr Tunabuna said.

He said the outcome would be communicated once Cabinet responded in the coming weeks.

Sugarcane crushing is expected to begin shortly following dates announced by the Sugar Industry Tribunal.

The Ministry estimates approximately six million litres of diesel will be consumed during harvesting, transportation and crushing operations, including use by lorries, mechanical harvesters, tractors, locomotives and mill generators.

Mr Tunabuna acknowledged rising diesel prices, driven by global supply chain disruptions linked to conflict in the Middle East, posed serious risks to the sector.

“We are urging you to be smart, learn from the past, move forward with less over-dependence and diversify into better options,” he told farmers.

Government has already approved more than $36 million in cane payment top-ups for the industry, and Mr Tunabuna cautioned further spending would place additional pressure on government finances.

Mr Pillay also asked when the 2026 forecast cane price would be announced, noting fuel costs were continuing to rise as farmers prepared to sign cane agreements with the Fiji Sugar Corporation.