$5M fuel subsidy rolled out to boost sugar harvest

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Government has unveiled a $5 million fuel subsidy package aimed at reducing harvesting and cartage costs for sugarcane farmers as the 2026 crushing season gets underway.

The Ministry of Agriculture, Waterways and Sugar Industry announced that the funding will subsidize diesel fuel at $2 per litre for lorries, locomotives, mechanical harvesters and tractors used exclusively for cane harvesting and transport.

Agriculture and Sugar Minister said the funding was reallocated from existing agriculture and sugar industry programmes to provide immediate relief from rising fuel costs.

The subsidy will be available from June 20 to August 31, 2026, and is expected to support harvesting and cartage operations during the peak months of the crushing season.

Industry figures show that around 4.6 million litres of diesel were used for harvesting and cane transport in the 2025 season, with approximately 2.3 million litres consumed between June and August alone.

To qualify, all lorries, tractors used for cane cartage, mechanical harvesters and locomotives must be registered with the Fiji Sugar Corporation and comply with Land Transport Authority requirements.

The Ministry says the subsidy payments will benefit sugarcane farmers directly, although the distribution mechanism will be determined jointly by the Fiji Sugar Corporation, the Sugar Industry Tribunal and the Sugar Cane Growers Council. Measures will also be put in place to prevent double claims and misuse of funds.

The subsidy will be distributed on a first-come, first-served basis, with allocations linked to the volume of cane harvested and delivered to the mills. The programme will end on August 31 or earlier if the allocated funds are fully utilized.

Minister Tunabuna has urged farmers, transport operators and sugar mills to begin harvesting and crushing operations immediately, saying the Government remains committed to supporting the long-term sustainability of Fiji’s sugar industry.