Acting Prime Minister Aiyaz Sayed-Khaiyum says all proceeds from the sale of sugar will be shared between the growers and the miller through a 30/70 percent ratio.
He highlighted this when questioned by SODELPA MP Aseri Radrodro on how the recent sugar price increase will impact stakeholders including the Fiji Sugar Corporation, landowners and farmers.
The Attorney General says with the increase in sugar price, an additional revenue of $23.4 million will be generated and the FSC will receive about $7 million which is 30%.
Sayed-Khaiyum says the FSC will use the additional $7 million to improve the efficiency of the mills and increase cane production.
He says the remaining $16 million will go towards the proceeds of farmers as per the Master Award.
The Acting Prime Minister says as the price is guaranteed at $85 per tonne, the government will save the $16 million from the initial subsidized price.
He says the Fiji Sugar Corporation like any other business needs to stay competitive and has to have a decent investment plan and sufficient cash to implement it.
Sayed-Khaiyum says Government has put close to $500 million in the Sugar Industry since 2016 through various subsidies and other assistance to farmers.
He says apart from government funding they also need market driven solutions too.
Sayed-Khaiyum says the Ministry was aware of the request for an increase in the price of sugar however they did not interfere with the FSC or the FCCC.
He says the FSC wanted an increase of $1.49 per kilogram but the FCCC went with 90 cents per kilo.
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