The Standing Committee on Economic Affairs says the Fiji Sugar Corporation’s reported 2025 net profit does not represent a genuine turnaround, warning that the sugar industry remains under severe structural, operational and financial pressure.
Committee Chair Sakiusa Tubuna tabled the committee’s consolidated review of FSC’s 2024 and 2025 Annual Reports in Parliament on Friday.
Tubuna said while FSC recorded a net profit in 2025, the committee found the result was largely driven by Government support and accounting adjustments rather than improved operational performance.
He said beneath the positive headline figure lies a worrying reality of declining sugar production, deteriorating infrastructure and continued financial vulnerability.
The committee noted that sugar production has fallen to its lowest level in more than a decade, with ongoing cane supply constraints, high levels of burnt cane and inefficiencies in harvesting and transport continuing to affect the industry.
Tubuna said FSC also remains heavily burdened by debt and dependent on continued Government assistance, raising serious concerns about its long-term financial sustainability.
The report also highlights weaknesses in governance, asset management and industry coordination, saying years of underinvestment have contributed to deteriorating infrastructure.
While FSC has announced diversification initiatives, the committee said these remain largely aspirational because they lack clear business cases, financing strategies and measurable outcomes.
The committee also expressed concern over the continued decline in the number of cane growers and the total area under cultivation, warning that this poses a direct threat to the future of the industry.
Tubuna said without urgent measures to improve the economic viability of cane farming and rebuild growers’ confidence, production targets will remain out of reach and the industry’s contraction will continue.
The report identified the high cost of production as a major challenge for farmers, particularly given that the standard 10-hectare farm size was established in the 1960s and is no longer economically sustainable.
Tubuna said around 80 percent of cane farmers produce only 20 percent of the total cane supplied to the mills, while the remaining 20 percent of growers produce 80 percent of the total tonnage. He said low cane yields and rising production costs have significantly reduced the industry’s competitiveness.
Despite the challenges, the committee acknowledged FSC’s efforts to maintain operations through mechanisation, digitalisation and diversification into new product streams, describing these initiatives as an important foundation for future reform.
However, Tubuna stressed that incremental changes would not be enough to reverse the industry’s decline.
He said the committee’s findings point to the need for decisive and coordinated reforms, including stronger governance, improved accountability, strategic investment and a fundamental reassessment of the sugar industry’s long-term business model.
The committee has recommended measures aimed at restoring operational discipline, improving transparency, reducing the industry’s reliance on Government funding and supporting a transition to a more sustainable and commercially viable future.
Tubuna thanked the FSC board, management and staff, as well as committee members, for their cooperation during the review.
