[File Photo]
The Fiji Sugar Corporation is warning that sugar stocks could run out by the end of the month if harvesting does not pick up quickly, as delays in farmer readiness continue to slow the start of the crushing season.
Appearing before the Standing Committee on Economic Affairs, Chief Operating Officer Mikaele Daukoto stated that mill operations have been delayed due to extremely low cane delivery readiness, with some areas recording as little as 4 percent Memorandum of Gang Agreement submissions compared to around 60 percent last year.
Daukoto says the situation is placing pressure on national supply.
“We are supposed to be starting Rarawai Mill on the 16th and Labasa Mill on the 17th. But at the moment, the figure hasn’t changed much, it’s still around 5–6 percent compared to previous years.
If nothing changes over this weekend, we may have to defer crushing, which will threaten supply to the nation from early July.”
FSC Chief Executive Bhan Pratap Singh says the government’s decision last night to increase cane delivery payments by five dollars per tonne is expected to encourage harvesting gangs to mobilise.
“The delivery prices that they expected has been fulfilled last night through an additional funding of $5 per tonne and that is expected to help them start operations.”
However, concern remains over farmer participation, with Singh admitting that harvesting gangs have been slow to confirm readiness.
At the same time, Singh says the industry remains under severe financial pressure, with rising debt levels and aging mill infrastructure worsening inefficiencies.
He told the committee that without major structural reform or increased investment, the industry will continue to struggle to meet production targets.
