Hopes high of Suagr Industry bouncing back

Hopes are high that the sugar industry will bounce back and provide more to the growers, the millers and the nation as a whole.

According to a Ministry of National Planning paper, steps should be taken to return confidence in the sugar sector to inspire people into cane farming.

One of the issues noticed is that many cane farmers left the sugar industry due to the non-renewal of ALTA leases and the younger generation in the cane farming community also losing interest in cane farming.

The Ministry of National Planning also said the FSC should consider a payment system where farmers are paid more regularly based on their cane harvested.

It said a definite timeline for the adoption of the Quality Cane Payment System.

It has also been suggested to enforce penalties on growers who supply burnt cane due to the low cane quality and the increased ratio of the amount of cane needed to make a tonne of sugar.

That stands at 13 to 4 at this stage compared to 8 to 8 cane to sugar ratio about a decade ago.

Suggestions have also been made to improve profitability and management efficiency of FSC through restructure and reconsideration of remuneration package and other fringe benefits of FSC management and workers.

The Ministry of National Planning said this can also include considering the feasibility of possible privatization of mills that are profitable.

It said cooperation and commitment is also needed among all industry stakeholders including the Sugar Industry Tribunal, the Sugar Research Institute of Fiji, the Sugar Cane Growers Fund, landowning units, landlords including the NLTB and the state.

It has been revealed that the government has commissioned the preparation of a Sugar Industry Plan for 2009 to 2014 with a desired outcome and impacts to increase and diversify on and off-farm livelihood opportunities for farmers as well as diversifying the income base of FSC from sugar cane by-products such as electricity co-generation and ethanol production.  

However, with the uncertainty surrounding the EU assistance, the government is now seeking alternative funding to fund the Sugar Industry Plan.