THE rising cost of cane production, harvesting and delivery has contributed to the deteriorating state of the sugar industry, says Fiji Cane Growers Association general secretary Bala Dass.

He said the number of active growers had fallen from 18,600 in 2006 to 13,000 in 2013, a reduction of 5600.

Speaking at the University of the South Pacific’s 2015 economic update in Lautoka last week, he said canegrowers had struggled in recent years.

“The average cost of cane production, harvesting and delivery was $45 per tonne of cane,” Mr Dass said.

“The cost includes hiring of farm labourers and canecutters during harvesting season, purchase of a 50kg of fertiliser at a price of $31.50, weedicides, land preparation for new crop such as ploughing and harrowing, and delivery of cane by lorry due to the state of decay of the rail system.

“Canefarming has become a non-profitable business for at least 70 per cent of farmers who produce only 30 per cent of the total cane crop while 30 per cent of farmers produce 70 per cent of the crop.

“For the 2013 season, farmers received a little less than $89 per tonne.

“If one removes the cost of production, harvesting and delivery of cane of $45, the net income that farmers get from a tonne of cane is $44.”

He said cane production had fallen by 1.618 million tonnes from 2006 and sugar production fell by 130,140 tonnes.

“Seventy per cent of farmers produce an average of 200 tonnes of cane.

“No doubt this has fallen to 150 tonnes last year.

“A little over 13,000 farmers are active growers and that leaves 9200 farmers in this category of average producers.”