National Federation Party Leader, Professor Biman Prasad says the Government should immediately announce fuel subsidy for sugarcane harvesters and cane lorry operators that will act as assurance for cane growers to start preparing for this season’s harvesting and crushing season.
Professor Prasad says the subsidy is critical to allaying fears of financial hardship for growers.
In a letter to the Minister for Agriculture, Waterways and Sugar Industry Hon Tomasi Tunabuna, Professor Prasad says he has recommended rates to serve as an increase to the current rate of harvesting and transportation of sugarcane to the three mills of Lautoka, Labasa and Rarawai.
He has recommended an additional $5 per tonne for cane harvesters and $6 per tonne for cane lorry operators.
These rates should be added to the varying current rates charged by harvesters and lorry operators and should be subsidised by the Government.
He says Fiji Sugar Corporation confirms that cane growers are not ready because harvester and cane lorry operators are demanding increased rates.
Professor Prasad says due to the collapse of the railway network since 2009 that was the cheapest and most effective method of transportation, more than 85 percent of the harvested crop is now transported by lorries.
He says due to rising fuel costs, harvester and lorry operators are demanding an increase to their harvesting and cartage rates and growers simply cannot afford to pay increased rates because of their slim profit margins and the fact that more than 70 percent of growers are average or below average producers.
