Fiji Sugar Corporation (FSC) warns that national sugar supplies may run out by the end of the month if cane harvesting does not accelerate immediately. Chief Operating Officer Mikaele Daukoto informed the Standing Committee on Economic Affairs that cane delivery readiness is currently between 5% and 6%, a significant drop from the 60% recorded during the same period last year.
Why is Fiji facing a potential sugar shortage?
The shortage stems from a lack of farmer readiness and low levels of cane delivery agreements. According to Mikaele Daukoto, mill operations are facing delays because harvesting gangs have not mobilized at the necessary scale.
In some specific regions, the situation is even more critical. Daukoto reported that Memorandum of Gang Agreement submissions in certain areas have fallen to just 4%, compared to the 60% seen during the previous season. This lack of preparation threatens the scheduled start dates for major processing facilities.
The Rarawai Mill was scheduled to begin operations on the 16th, followed by the Labasa Mill on the 17th. If harvesting readiness does not improve over the coming days, FSC officials warned they may have to defer crushing entirely. Such a delay could jeopardize the national sugar supply starting in early July.
How is the government attempting to fix the supply gap?
To combat the slow mobilization, the government implemented a price increase for cane deliveries. FSC Chief Executive Bhan Pratap Singh confirmed that the government decided last night to increase cane delivery payments by $5 per tonne.
Singh stated that this additional funding was intended to meet the delivery prices expected by farmers and harvesting gangs. He expressed hope that the extra $5 per tonne would provide the necessary incentive for workers to begin operations immediately.
Despite the financial incentive, Singh admitted that concerns remain. He noted that harvesting gangs have been slow to confirm their readiness, suggesting that the $5 increase may not be a complete solution to the mobilization problem.
What structural issues are impacting the FSC?
Beyond the immediate harvesting delays, the sugar industry is facing deep-seated operational challenges. Singh told the Standing Committee on Economic Affairs that the industry remains under severe financial pressure.
He identified two primary drivers of this instability:
- Rising debt levels: Increasing financial obligations are tightening the corporation’s liquidity.
- Aging infrastructure: Older mill equipment is contributing to operational inefficiencies.
Singh emphasized that without major structural reforms or significant new investment, the industry will struggle to hit its production targets. The current crisis highlights the tension between immediate supply needs and the long-term requirement for modernized facilities.
| Metric | Current Season | Previous Season |
|---|---|---|
| Cane Delivery Readiness | 5% – 6% | ~60% |
| Incentive Increase | $5 per tonne | N/A |
Frequently Asked Questions
When are the sugar mills expected to start?
The Rarawai Mill was scheduled to start on the 16th, and the Labasa Mill on the 17th, though these dates are at risk if harvesting does not increase.
What caused the delay in cane harvesting?
The delay is caused by low cane delivery readiness, specifically a significant drop in Memorandum of Gang Agreement submissions by harvesting gangs.
How much extra are farmers receiving for cane?
The government has increased cane delivery payments by $5 per tonne to encourage mobilization.
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