Sugar Cane Growers Fund CEO Raj Sharma says the fund approved $1.5million in loans for June alone.
“That basically means that on 14th of June in Labasa, we had an open day. In one day, we approved a loan of $230,000,” he said.
Mr Sharma said the fund had also opened branches throughout Fiji in light of the impending cane crushing period.
“Many farmers actually borrow money for the harvest but there have also been big loans to buy farms, buy trucks.
“Some of the people also bought trucks that they own via tenders through the Fiji Sugar Corporation.
“So, those were the contributing factors to approving $1.5million within a month compared with other months which would have been $750,000, $800,000 or so.”
Mr Raj said this was the highest amount in the span of six months.
“Eventually, a record in a month to give $1.5million in loans.
“Last year in June it would have been around a million dollars.
“So, on average last year, the whole of the year, we did about $9million. So, when you take out the average of 12 months, it’s about $800,000 per month.
“This has been double fold because this shows some people have gained the confidence to come back to the industry and invest in it.”
Permanent secretary for Multi-Ethnic Affairs and Sugar Industry Dr Vinesh Kumar said the fund provided another alternative through which farmers chose to take loans, money and investment in terms of the expansion of their plans.
He said it was a positive sign and indicative of the farmers’ confidence in their ability to repay their loans.
“They also believe that systems and processes with policies and government-backed policies give them the confidence to invest that kind of money.”
Considering the number of years the fund has been operational, Mr Kumar said the ministry was aware of the potential risks associated with approving loan applications.
“They’re aware of the risks and have definitely captured those risks, making sure that their return of investment is there.”
