23 September, 2023, 10:31 am Central - 25°C Rain

FSC is not bankrupt and will continue with cane payments – Singh

FSC is not bankrupt and will continue with cane payments – Singh

By Dhanjay Deo , Naveel Krishant
Saturday 22/01/2022
Fiji Sugar Cooperation.

The Fiji Sugar Corporation is not bankrupt, is financially sound and will continue with the cane payment according to FSC CEO, Bhan Pratap Singh who is calling on cane farmers not to be discouraged.

Singh says Fijians who directly or indirectly rely on the sugarcane industry, suffer when thoughtless political statements are made and most recently, the leader of the National Federation Party labelled FSC as ‘bankrupt’ which is grossly misleading and seeks to tarnish FSC’s reputation as a private corporation.

Singh adds FSC has continued to publish its financials and have very detailed financials for 20 plus years available on their website, and one can analyze and see that there are factual errors in Fiji Labour Party Leader, Mahendra Chaudhry’s releases.

Singh has urged Chaudhry and Prasad to think about the sugarcane industry and the thousands of farmers, cane cutters, lorry drivers, and their families who rely on it, instead of playing politics.

Professor Prasad says the reality of the matter is that FSC is technically insolvent and bankrupt without the support of taxpayers through Government because of the Corporation’s inability to pay its massive debts.

He also says no amount of sugar-coating can hide this painful and bitter truth of a Corporation that has been left in a dilapidated state like its milling equipment under the leadership for the last 15 years.

Prasad adds Singh should know that late last year Government through the Ministry of Economy was forcibly acquiring about 6 percent shares held by individuals and organisations at $0.005 or half a cent per share.

He says if this is not bankruptcy, what is.

In a statement, Chaudhry had stated that none of the five reasons advanced by the FCCC in support of the increase provides any justification for the hefty 64% price hike of sugar from $1.40 to $2.30 per kg.

He says FSC’s cost of manufacture of 1kg sugar was $1.03 as per its latest published annual report for 2020.

He says the old ex warehouse price of $1.40 gave FSC a profit margin of 37c or 36% and that this was more than reasonable.

Chaudhry further says therefore there is no justifiable basis for an increase.

fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
Consumer Council strongly opposes proposed electricity tariff increase
The Consumer Council of Fiji has strongly opposed the proposed electricity tariff increase submitted by the Energy Fiji Limited to the Fijian Competit...
54 minutes ago
Many turn up to pay their last respects to Ratu Tu'uakitau
Many turned up today at the Wesley Methodist Church in Suva to pay their last respect to former politician Ratu George Cokanauto ...
1 hour ago

Police investigate alleged assault of a farmer by senior company executive and colleagues in Navua in 2018
Police have today confirmed that they are investigating a report lodged earlier this week where a 55 year old farmer of Batiniyaka Settlement Navua ...
17 hours ago

Hard work pays off for former Naitasiri rugby captain Sadrugu who was admitted to the bar today
More than 4 years of hard work and sacrifice has paid off for USP law student and former Naitasiri rugby skipper Benjamin Sadrugu after he was ...
17 hours ago

I have been told that by November, everything will be done and there will be uninterrupted water supply – Pro. Prasad
Deputy Prime Minister and Minister for Finance Professor Biman Prasad visited the Balevuto dam site in Ba, where the Water Authority of Fiji briefed ...
17 hours ago

Car overturns at Milverton Road
A car has gone off the road and overturned at Milverton Road in Suva. Police are at the scene. We are still trying to gather more ...
17 hours ago
7 Grace Road Group executives declared prohibited immigrants in Fiji after decisions by the South Korean Government and a request by Interpol
7 Grace Road executives in Fiji have been declared prohibited immigrants by the Fijian Government, it has been made clear through government ...
8 days ago

EBayShop Online Recruitment scam
The Consumer Council of Fiji has issued a public alert about a group of individuals running a deceptive pyramid scheme known as “EbayShop Online Recruitment.”
9 days ago

Bainimarama and Qiliho’s trial
The trial of former Prime Minister Voreqe Bainimarama and suspended Commissioner of Police Sitiveni Qiliho begins
36 days ago