Following repeated demands and boycotts from sugar cane farmers, Prime Minister Sitiveni Rabuka says government is now determining whether it will be sustainable to increase the guaranteed cane price from $85 to $110.
While responding to questions, Rabuka says following their meeting with the farmers in the Western Division last week, the best outcome for them was their explanation to the farmers about why the minimum cane price is $85.
Rabuka says despite this the farmers have said they will not cut unless it is raised to a certain level.
He says those figures will have to be calculated to determine whether it is sustainable to increase the price.
Rabuka says they await for the Minister of Finance to finalise this, after which the Minister of Agriculture will advise them on whether they can or cannot do so.
He also confirms that during today's budget debate, he sent a note to the Minister for Agriculture seeking details on the returns from the $85 per tonne cane payment, including how much revenue is generated from bagasse.
Rabuka says all of that needs to be worked out before the government can confidently say they can increase the payment without making a loss.
