[Photo: FILE]
The sugar industry is struggling to stay afloat as rising production costs continue to eat into its viability.
Sugar Minister Tomasi Tunabuna says the sector is spending more to produce sugar while gaining less in return.
“If it’s costing more, that means you’re spending more to get less. That’s uneconomical. When the cost of production is high, it will be inefficient. Simple as that.”
The comments come after Finance Permanent Secretary Shiri Goundar warned that sugar is no longer sustainable in its current form.
Opposition MP Parveen Bala said the answer was to make the industry bigger than just sugar.
He says farmers and millers need more income streams through areas such as biomass power generation and using agricultural waste for other products.
Opposition Leader Inia Seruiratu says decades of government support have not stopped the decline of the industry.
He points out that subsidies, debt write-offs and financial assistance have placed a heavy burden on taxpayers while sugar production continues to fall.
Seruiratu states the country now needs a serious discussion on whether the current model can continue.
Meanwhile, Assistant Minister for Justice Josaia Niudamu has blamed the previous FijiFirst government for decisions that weakened the industry, including the closure of the Penang Sugar Mill in Ra.
He says Ra farmers should begin shifting towards other crops while support is provided for the transition.
“This decision remains a source of distress for the farmers in Ra till today. Mr. Speaker, Sir, I call on the Ra farmers to begin a managed transition towards crop diversification, while this Government and its partner institutions will provide the necessary support.”
Niudamu says crops such as coffee, cowpea and beans could provide new income opportunities as Fiji looks to reduce its dependence on sugar.
