Farmers Call for Cane Price Review
“The 15 per cent VAT has added to the hardship faced by cane farmers affecting not only food prices and everyday household products but also the raising cost of fuel and farm inputs such as fertilizers and weedicides,” Mr Chaudhry said.
Monday 06 May 2024 | 03:17
National Farmers Union general-secretary Mahendra Chaudhry with fellow members after the union’s Annual General Meeting at Ram Mandir in Labasa on May 4, 2024. Photo: Shratika Naidu
The review of the sugar industry master award and a minimum guaranteed cane price of $110 per tonne are two out of the eight resolutions passed by the National Farmers Union (NFU).
Its Annual General Meeting was held at Ram Mandir Hall in Labasa last Saturday.
NFU general secretary Mahendra Chaudhry said it was imperative that the price of cane take account escalating costs of land rents, cultivation, harvesting and delivery to the mills as well as rising costs of living brought on largely by the increase in Value Added Tax (VAT) to 15 per cent in the 2023 to 2024 national budget.
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“The 15 per cent VAT has added to the hardship faced by cane farmers affecting not only food prices and everyday household products but also the raising cost of fuel and farm inputs such as fertilizers and weedicides,” Mr Chaudhry said.
“The minimum guaranteed price of $85 a tonne was set in 2018 well before the impact of COVID and the increase in VAT to 15 per cent.”
He said there was a need to urgently review such to ensure that cane farming remains viable.
One of the members, Bram Deo of Tabia, Labasa said he spent more than $1000 to hire labourers from Wainunu, Bua to work on his farm for a month.
“Apart from paying $25 per tonne as their income, I have had to pay for their transport from Bua to Tabia, supply one month of food ration, fish and yaqona for weekends and provide a house for them to stay with free water and electricity,” Mr Deo said.
“Apart from the seven labourers hired, their wives also came with their children so that the wives can cook food for them.”
Review Master Award
Moreover, NFU is calling for a review of the sugar industry master award saying that it has been well overdue and should be carried out without further delay.
Mr Chaudhry said the review process was well defined in the master award; the Sugar Industry Act should be followed without exception.
“It should be independent and be conducted by the Sugar Industry Tribunal based on the submissions made by growers’ organisations and the miller,” he said.
“The report of the review commissioned by the tribunal conducted by Dr Steve Ratuva in 2015 should be made available to the growers’ organisations.”
One of the members, Ami Chand agreed on the need to change some of the things in the master award such as the number of hours and days required to supply burnt cane to the mill.
“There are many farmers who work hard and then someone sets their farms on fire,” Mr Chand of Tabia, Labasa said.
“We have to quickly arrange the labourers to harvest the burnt cane and take the load to the mill before the required deadline otherwise we won’t get our money.”
Farmers leaving the sugar industry
During the meeting it was highlighted that the Fiji Sugar Corporation statistics show that close to 5000 active growers have left the industry since 2006.
Over 1700 leases are due to expire in seven years revealing that 1113 are in the west and 31 are in the North will expire.
“Government must implement the Cabinet decision in 2008 to pay full premium on all land lease renewals and new leases to the landowners,” Mr Chaudhry said.
“Growers who were urged to pay on the promise of being reimbursed must be repaid without delay.”
A sugarcane farmer, Hari Lal said none of his children want to continue sugarcane farming as flow of income was not stable.
“No one wants to work hard under the sun and rain and what is more worrying girls these days don’t want to marry a sugarcane farmer,” Mr Lal said. This is why many boys leave their father’s farm to work in Labasa Town so that they have a good married life.”
Ministry of Sugar Industry’s response
When contacted Minister for Sugar Industry Charan Jeath Singh yesterday, he said he was aware of these concerns and issues.
“I am also a sugarcane farmer and I understand the plight of the farmers,” Mr Singh said.
“We are working on addressing these issues and trying to bring back the sugar industry on its foot.”
He said many farmers are aware of the recent changes and assistance provided by the ministry to assist them.
“Just recently I was in the North as part of the new farmers and lease renewal programme signing agreements for 88 sugarcane farmers and this week we will be in the west,” he said.
“We are also trying to salvage Rakiraki mill.”
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