Sugarcane farmers are being urged to harvest their cane, with the Government confirming there will be no increase in the guaranteed cane price from $85 to $110, warning that failing to harvest would not only affect farmers' income and loan repayment obligations but also contractors, transport operators, mill workers and businesses that rely on the sugar industry.
Speaking during a press conference today, Minister for Agriculture and Sugar Industry Tomasi Tunabuna says farmers must first sign the Memorandum of Growers Agreement with harvesters and transport service providers that determines transport rates based on the forecast cane price.
He says the recent fuel price increase should not affect those rates because the Government has provided a $5 million fuel subsidy, while the Fiji Sugar Corporation is also paying a 10 cents per litre rebate, bringing total fuel assistance to $2.10 per litre.
He adds that the assistance is greater than the increase in fuel prices, with the difference going directly to farmers.
Tunabuna says reports from the field indicate that some cane harvesting has already begun, although progress has been slow.
He stresses if harvesting does not proceed, local sugar supplies could be affected, forcing the Government to consider alternative options to meet domestic demand.
He also confirms that sugarcane farmers will not receive an increase in the guaranteed cane price from $85 to $110 as the Government cannot justify the increase while it is already providing millions of dollars in subsidies and assistance to the industry.
Tunabuna says the current guaranteed price was determined after extensive consultations and takes into account the range of support already being provided by the Government.
He says while the guaranteed price has remained at $85 since 2018, Government assistance to farmers has increased significantly through subsidies, grants and other forms of support.
Tunabuna says if the guaranteed cane price was increased to $110 per tonne, the Government’s top-up payment would exceed $80 million, which is almost equal to the Ministry of Sugar’s total budget allocation of $97 million.
The Minister says with current world market prices, the Government is already expected to pay more than $40 million in top-up payments next year alone.
Tunabuna says any decision to increase the guaranteed cane price would require the Government to reconsider the other assistance currently being provided to sugarcane farmers.
He says the Government can only afford such an increase if other subsidies are removed, adding that support provided through other programmes already exceeds what was available to farmers in 2018.
The Minister has also dismissed claims that he had ignored correspondence from Fiji Labour Party Leader and National Farmers Union General Secretary Mahendra Chaudhry, saying he has not received any official letters from him.
He says the only communication he received was a text message requesting a meeting, which he asked to be directed through his secretary.
He says the sugar industry has often been used as a political platform, particularly ahead of elections.
He believes some people are using the current harvesting dispute as a political tool to gain support.
He questions why the demand to increase the guaranteed cane price has only emerged in the last month, noting that in previous years, farmers had received payments above the guaranteed price without similar calls.
He says misinformation about the level of Government support has influenced some farmers not to harvest.
