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Fiji’s sugar sector is no longer sustainable in its current form, says Permanent Secretary for Finance Shiri Goundar.
He warned that continued investment without a clear recovery plan could place further pressure on limited public funds.
Goundar says Fiji must stop “fooling” itself that more government support alone can revive the industry.
Speaking at a post-budget forum in Nadi last night, he said rebuilding the sector could require billions of dollars, with no guarantee the investment would achieve the desired results.
“We are running an insolvent FSC, which has taken a significant amount of taxpayer money, in the form of debt-related fees. We should stop fooling ourselves about reviving this industry, because we can’t. It’s going to cost a billion dollars, if we try, and, if we realize after spending a billion dollars, that we aren’t reviving this industry, as Dr. Shakeel said, it takes their money down the drain.”
Those funds, Goundar said could instead be directed towards critical national priorities, including infrastructure development.
Goundar says the sugar industry requires a carefully planned intervention, with diversification being one option to support a gradual transition away from sugar production.
However, Fiji Sugar Corporation Chief Executive Bhan Singh says moving away from sugar is not a simple process.
“For any other alternative product that you put in the main belt areas, who is the market? Who is the buyer? Who will buy it? If everyone goes, say for example, eggplant, the price will go from $20 per kg to maybe $3 per kg. The grower will then complain again. There are many other examples like this. So, options have been tried, but sugar remains.”
Singh says previous attempts to introduce alternative crops have faced challenges, including limited market demand and questions around long-term sustainability.
He adds that sugar remains a resilient crop compared to other alternatives, particularly because it can recover after climate-related events.
Singh maintains that continued support and investment are necessary to sustain the industry and protect the livelihoods of sugar farmers.
