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FSC urges immediate cane harvesting, warns delays could cost millions and threaten sugar exports

FSC urges immediate cane harvesting, warns delays could cost millions and threaten sugar exports

The Fiji Sugar Corporation is urging cane growers to commence harvesting immediately, warning that any further delay could result in millions of dollars in losses, threaten Fiji's sugar export commitments and extend crushing operations into the rainy season.

FSC Chairman Nitya Reddy says the Lautoka, Rarawai and Labasa mills have been ready for crushing since Wednesday, and farmers should take advantage of the current favourable weather conditions to begin harvesting without further delay.

Reddy says any further delay will inevitably extend operations into the rainy season, leading to increasingly difficult harvesting and transport logistics, labour shortages and reduced availability of mechanical harvesters, resulting in significantly higher costs for all stakeholders.

He says the continued delay also carries serious consequences for the national economy and the sugar industry.

Based on its experience during the 2025 season, Reddy says FSC anticipates significant sugar losses arising from a combination of poor cane quality and mill operating challenges.

He says the Corporation estimates that about 250,000 tonnes of cane could be affected by a three-week extension to the season, resulting in a revenue loss of at least $3.5 million each week.

He says these losses will increase exponentially if the season is extended further, and there is also a real risk that substantial quantities of cane will remain unharvested as standover cane.

Reddy says about 400 seasonal employees are waiting for crushing to commence while facing the high cost of living without any income.

He says their collective loss of wages amounts to about $125,000 a week, while FSC continues to employ 1,205 employees at a cost of about $112,000 a day in preparation for the crushing season.

He says FSC has completely exhausted its local sugar stocks, forcing it to import 635 tonnes of sugar.

He adds that FSC also requires 4,300 tonnes of sugar to meet demand in local and regional Pacific markets, none of which is currently available.

Reddy says FSC must supply 9,200 tonnes of sugar to the United States by mid-September, with shipment scheduled for mid-August.

He warns that failure to fulfil this obligation will cause lasting damage to Fiji's ability to access the United States market in the future.

He also highlights the Government's allocation of nearly $96 million for the 2026 season, with almost half of that amount, $42 million, provided as a direct price subsidy of $28 per tonne of cane to support the minimum guaranteed cane price of $85 per tonne.

He says the $96 million represents an additional average benefit of $64 per tonne of cane and about $9,000 per grower across the industry, equating to an effective cane price of $121 per tonne, which he says is 10 percent higher than the price currently being demanded.

He says FSC strongly rejects attempts by union leaders to claim that the Corporation is responsible for the forecast cane price of $57 per tonne, saying the Master Award prescribes a clear and transparent process involving representatives of growers and FSC, with certification by the Sugar Industry Tribunal.

He says the Corporation acknowledges responsibility for its operational underperformance but adds that the industry also faces major challenges, including poor-quality cane, low POCS and purity, excessive extraneous matter, multiple ratooning, with 60 percent of the crop more than 10 years old, nearly 60 percent burnt cane, resistance to varietal change and the fact that only about 4,200 of the industry's 10,800 registered growers are productive.

Reddy is once again appealing to all growers to commence harvesting without further delay, saying that by working together, the industry can minimise further losses, maximise returns, protect employment, honour market commitments and give the 2026 crushing season the best possible opportunity for success.

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