Outgoing Sugar Industry Minister Charan Jeath Singh has voiced concerns regarding the potential losses for cane growers if the crushing date for sugar cane is extended. He emphasized that the profit share structure, which allocates 30 percent to the Fiji Sugar Corporation (FSC) and 70 percent to the growers, means both parties would bear the costs associated with keeping the mill operational. Running the mill incurs daily expenses of approximately $50,000, which would ultimately reduce the profitability of sugar produced during the season.
Singh pointed out that while he, along with the government, has attempted to keep the mill open for the benefit of farmers, the diminishing number of trucks bringing cane to the mill makes its continued operation impractical. With only a handful of trucks delivering cane, he affirmed that extending the crushing date would likely result in increased losses for both the growers and the FSC.
The Rarawai Sugar Mill, which recently closed on January 12, faced appeals from growers to prolong operations. However, Singh stated that allowing for an additional crushing period with insufficient cane supply would not be a sensible decision.
In addressing the issue of stand over cane, Singh clarified that this phenomenon is not new. It commonly occurs every year when farmers encounter challenges in harvesting due to labor shortages or personal reasons. He stressed the importance of farmer initiative, noting that while the FSC provides support, it cannot shoulder all responsibilities.
Despite challenges, including a recent mill fire and adverse weather conditions that have affected growers, Singh expressed optimism for the future of the industry. There are aspirations to boost annual sugar cane production by 200,000 tonnes, demonstrating a commitment to overcoming obstacles and improving the sector’s resilience.