[Photo: FILE]
Sugar Industry Minister Tomasi Tunabuna has expressed disappointment over constant complaints from sugarcane farmers and stakeholders, stressing that the government is not seeing significant returns from the sector.
Tunabuna says ‘There is no logic in it’ while setting the record straight on government subsidies.
While sugarcane farmers continue to demand higher payouts, the Minister reveals the government is effectively buying cane at an inflated price of over 1, 100 per tonne, only to sell the processed sugar at a loss for less than $774.
“There is no logic in that. We cannot, you as someone who is doing business, in any business at all, you won’t be surviving comfortably if you are buying at a higher price and you are selling at a lower price. That should be known. And we should not be continuing to do business that’s costing the government and taxpayers a lot. We cannot accommodate that. People are just surviving on somebody else’s sweat.”
Tunabuna pointed to critical inefficiencies, particularly at the Labasa mill, where higher levels of burnt cane are being produced, reducing sugar quality.
He noted that in Fiji, around 13 tonnes of sugarcane are currently needed to produce one tonne of sugar, compared to the global standard of about 9 tonnes.
Fiji currently only exports raw sugar, but yesterday’s commissioning of a new lab will allow the Ministry to test cane byproducts and diversify the industry.
The biggest worry for the Ministry is that early wet seasons make delayed harvesting highly difficult, meaning farmers must take advantage of the current good weather to harvest immediately.
