Govt announces $5m fuel subsidy for cane harvesting and cartage

The Government has announced a $5 million fuel subsidy package to help sugarcane farmers cope with rising harvesting and cartage costs during the current crushing season.

The Ministry of Agriculture, Waterways and Sugar Industry said the funding, reallocated from existing programmes within the agriculture and sugar sectors, will subsidise diesel fuel used by lorries, mechanical harvesters, locomotives and tractors involved in cane harvesting and transportation.

Agriculture, Waterways and Sugar Industry Minister Tomasi Tunabuna said the subsidy would provide temporary relief to growers and operators facing increased fuel costs.

“$5.0 million will be used to subsidize diesel fuel at $2.00 per litre and will only fund the lorries, mechanical harvesters, locomotives and tractors that will be used in the cane harvesting and cartage activities,” he said.

According to industry records, about 4.6 million litres of diesel were used for cane harvesting and cartage operations during the 2025 season. The figure excludes an estimated 1.2 million litres consumed by Fiji Sugar Corporation diesel generators at sugar mills during crushing.

The ministry said approximately half of the diesel used for harvesting and cartage was consumed during the first three months of the crushing season, from June to August.

Under the scheme, the fuel subsidy will apply from June 20 to August 31, 2026, or until the allocated funds are fully utilised.

To qualify, lorries, tractors used for cane cartage, mechanical harvesters and locomotives must be registered with the Fiji Sugar Corporation and comply with Land Transport Authority requirements.

The ministry said the subsidy funding would go directly to sugarcane farmers, with the distribution mechanism to be determined jointly by the Fiji Sugar Corporation, Sugar Industry Tribunal and Sugar Cane Growers Council. The agencies have also been tasked with monitoring and verifying the use of the subsidy to prevent misuse and double-dipping.

The programme will operate on a first-come, first-served basis and take into account the volume of cane harvested and delivered to the mills.

Meanwhile, Mr Tunabuna urged farmers, lorry operators, harvesting contractors and sugar mills to begin harvesting and crushing operations without delay.

“The Ministry is committed to the sugarcane sector and will ensure that sustainability of the industry is maintained in the long-term,” he said.