Fuel subsidy boosts cane harvest agreement sign-ups
Government's $5 million fuel subsidy supports harvesting and cartage costs.
Tuesday 30 June 2026 | 06:00
More sugarcane growers have signed their Memorandum of Gang Agreement (MOGA) ahead of the start of the 2026 harvesting and crushing season today, with further increases expected following the announcement of Government subsidy rates.
Sugar Cane Growers Council (SCGC) chief executive officer Vimal Dutt said MOGA submissions had increased across all three mill areas.
He said about 16 per cent of growers in the Lautoka Mill area had submitted their MOGA forms, while Rarawai Mill recorded 10 per cent and Labasa Mill 25 per cent.
Related stories
Mr Dutt said the figures were expected to rise significantly after growers received details of the Government's $5 million fuel subsidy package and the approved harvesting and cartage rates.
"The numbers are expected to increase because growers now have been clarified on how the $5 million subsidy will be distributed to cane cutters, transport operators and mechanical harvesters," he said.
Mr Dutt said the Fiji Competition and Consumer Commission (FCCC) had approved the new harvesting and cartage rates, with current fuel prices factored into the calculations.
He urged growers, harvesting gangs, cooperatives and service providers to begin harvesting promptly to take advantage of favourable weather conditions.
Mr Dutt also encouraged growers and farm operators to hold their Memorandum of Gang Agreement meetings, finalise harvesting arrangements and submit their MOGA forms to their respective Fiji Sugar Corporation sector offices without delay.
"Growers should review harvesting and cartage rates before August 31, 2026, as the rates remain subject to further review by the relevant authorities," he said.
The Fiji Sugar Corporation has confirmed harvesting and crushing operations at the Lautoka, Rarawai and Labasa mills will commence today.
Mr Dutt reaffirmed the guaranteed cane price of $85 per tonne, saying it would provide growers with stability despite uncertainty in the global sugar market.
He said the Government had continued its support for the sugar industry through the 2026–2027 National Budget, which includes funding for fertiliser subsidies, manual harvesting assistance, mechanisation grants and farm support.
A $5 million fuel subsidy package has also been introduced to help growers manage rising operational costs.
Under the scheme, mechanically harvested cane will attract a Government fuel subsidy of $5 per tonne, while manual cane harvesters will receive $3 per tonne to help address labour shortages and increasing harvesting costs.
Mr Dutt said the Council would continue working with the Government and industry stakeholders to secure additional support for growers and improve industry returns.
He also said the Council continued to pursue the reopening of tramline operations in several districts and was awaiting a tribunal decision on the matter.
Mr Dutt encouraged all growers and industry stakeholders to work together to ensure an efficient and successful 2026 harvesting and crushing season.
Advertisement
Advertise with Fiji Sun