'Sugar diversification won't fix farmers' struggles'

Diversifying into non-sugar crops is not the answer to Fiji's struggling sugar industry, with the National Farmers Union warning that many cane farms are unsuitable for alternative crops and calling instead for greater investment in sugar.

National Farmers Union president Surendra Lal said while diversification was often promoted as a way to provide farmers with a steady income amid delayed or uncertain cane payments, it would not solve the industry's underlying problems.

"Sugarcane is the most resistant to continue growing in salinity concentrated farms while other crops will die out or not survive," he said.

Mr Lal said many sugarcane farms in the Northern Division and other sugar-growing areas of Viti Levu had high levels of soil salinity, making it difficult to grow alternative crops.

He said this was why Government should invest more in supporting farmers to remain in the sugar industry.

Mr Lal also claimed meaningful dialogue had not taken place between Government and the industry's key stakeholders.

He said consultations had been held with growers, but not with the stakeholders who should be involved in shaping the industry's future.

Asked about Opposition Independent MP Alvick Maharaj's proposal for the Fiji Sugar Corporation (FSC) to pay farmers immediately for every tonne of cane delivered, Mr Lal said the current Master Award made such a system difficult.

"We know the sugar industry is on the brick of collapse, but, we can reform it into a financially thriving entity," he said.

Mr Lal said the industry's profitability could be improved through value-added products rather than relying solely on raw sugar exports.

"We see the price of sugar go down in the world market, so we have to look other alternative ways of value-adding such as setup of a sugar refinery," he proposed.

He also suggested the establishment of an ethanol plant to produce fuel for export and the domestic market, reducing Fiji's fuel import bill.

"I understand there was a study on these proposals of value-adding the sugar industry, but, no government stakeholder has taken this idea on board for implementation," he said.

Minister for Agriculture, Waterways and Sugar Tomasi Tunabuna said the sugar industry could recover.

He agreed that constructive dialogue could help bridge differences between Government and farmers.

Privatisation concerns

Mr Lal said privatising the Fiji Sugar Corporation would be difficult given current production levels.

Instead, he said Government should first invest in upgrading the efficiency of the country's three sugar mills.

"Firstly, it is making mills efficient, when this happens then they will be a turnaround of profitability, then only investors will come in," Mr Lal said.