Government plans multi-year restructure of sugar industry

The Government is planning a multi-year restructure of Fiji’s sugar industry, with a broader revival strategy expected to be announced by Prime Minister Sitiveni Rabuka by the end of the year.

Deputy Prime Minister and Minister for Industries, Commerce, Business Development and Public Enterprises Manoa Kamikamica said the Fiji Sugar Corporation (FSC) and the wider industry needed to undergo restructuring to improve profitability and ensure its long-term sustainability.

Speaking after the conclusion of the Parliament Special Committee on Sugar consultations in the Northern Division last Friday, Mr Kamikamica said the restructure would focus on leadership, farming techniques and improving yields.

“Factories are aging and running for newly 120 years,” Mr Kamikamica said.

He said sugar productivity was being affected by mill efficiency of about 40 per cent because of ageing infrastructure.

Mr Kamikamica said the restructure would not be completed within a year and would instead take several years to ensure the industry recovered.

He said Mr Rabuka would announce the broad strategy for sugar industry growth by the end of the year.

“In the meantime we will need to secure funding to ensure our broad strategy plan works and is concretely placed to make an impact,” he said.

National Farmers Union president Surendra Lal said the recent consultations would only be worthwhile if they resulted in concrete action to revive the industry.

Mr Lal said growers needed to be assured of $110 per tonne of cane for the revival process to begin.

“We will collaborate with Government once our demands are met,” he said.

Mr Lal, who attended the consultations, said he hoped new Minister for Sugar Charan Jeath Singh would address the growers’ payment request.