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The Fiji Sugar Corporation’s debt continues to increase as operating costs remain high while cane and sugar production decline.
Responding to questions from the Standing Committee on Economic Affairs regarding the company’s 2024 and 2025 financial reports, FSC Chief Financial Officer Anjesh Sharma stated that the debt level will continue to rise because the company cannot generate enough revenue to meet its operating costs.
Although the government wrote off FSC’s $200 million debt, causing it to drop in the 2025 financial year, Sharma noted that the debt will climb back to around $310 million for the financial year ending 2026.
Sharma added that, with this in mind, FSC has requested an additional government guarantee just to sustain its debt level.
“As we speak now, our government guarantee available for new borrowings is around $66 million from the $300 million given. If the current status quo remains, if the current cane production remains around 1.5 to 1.6 million tonnes, and the current world market price stays around this level, FSC’s debt will continue to rise, and we have to make cash flow decisions around it. Nothing will change.”
Sharma further stated that FSC is looking at its expenses in major areas.
As part of cost-mitigation efforts, he said FSC wants to revive the rail system so that cane can be delivered to just one mill in the Western Division.
Sharma believes there is no point in running two mills in Viti Levu if cane production remains only at around one million tonnes.
