Global sugar market determines cane prices, Minister tells farmers

The price paid to Fiji's sugarcane farmers is determined by the global sugar market, not by the Government, Minister for Sugar Tomasi Tunabuna told growers during a consultation in Seaqaqa yesterday.

Responding to a question from farmer Merenaisi Waqavakatoga on whether there was a strategy to keep cane prices attractive, Mr Tunabuna said Fiji's sugar industry worked backwards from the markets it supplied.

"The buying price of sugar cane is determinant on the buying price of sugar of the particular market that we supply to," he said.

Mr Tunabuna said Fiji currently produced raw sugar, which was sold on the raw sugar market, affecting the value returned to farmers.

"Our buying price for sugarcane of farmers received is basically based on how we process sugarcane and sell to that particular market," he said.

He said the Government had provided a top-up payment this year to ensure farmers received the guaranteed minimum price of $85 a tonne.

Mr Tunabuna said the top-up was separate from Government assistance through subsidies for fertiliser, chemicals and other farming costs.

He said if world sugar prices declined further, the Government would need to increase its top-up payment to maintain the guaranteed minimum price.

Mr Tunabuna said that, despite lower global sugar prices in previous years, the Government had still paid above the guaranteed $85 a tonne.

He said improving farmers' incomes also depended on reducing production costs and increasing returns from sugarcane land.

Mr Tunabuna encouraged farmers to diversify into other crops to supplement their sugarcane income and help offset rising production costs.

He added that the Fiji Sugar Corporation would provide further clarification on deductions for fertiliser and other assistance.

The consultation gave farmers an opportunity to raise concerns about pricing and better understand how cane payments were calculated.