The Standing Committee on Economic Affairs has recommended that consideration be given to progressively transforming the Fund into an agricultural commercial bank.
Presenting the report of the committee on the review of the Sugar Cane Growers Fund (SCGF) 2023 and 2024 annual reports, chairperson Sakiusa Tubuna outlined how this structural shift would broaden the institution’s capacity to serve the wider farming sector.
“Such a model would enable the institution to expand its financial products and services, improve access to affordable credit, support agricultural diversification, promote entrepreneurship, facilitate investment in modern farming practices and create a wider base of agricultural producers while maintaining its core commitment to cane growers,” Mr Tubuna told parliament.
The proposed transition comes as sugarcane farmers face escalating economic hardships.
The parliamentary review noted growing concerns expressed by growers regarding rising production costs, increasing lease renewal premiums, labour shortages, and the affordability of modern farming equipment.
“Evidence received during the review highlighted the increasing financial pressures being experienced by growers and the importance of ensuring that financial assistance remains accessible, responsive and aligned to the evolving needs of Fiji’s sugarcane farming community.” Mr Tubuna said the committee placed great emphasis on the importance of continuing legislative reform, strengthening stakeholder engagement, improving access to affordable financing, enhancing grower participation and representation, supporting mechanisation, and ensuring that future investments, services and programs remained aligned with the evolving needs of Fiji’s cane growers.
He said those measures would be essential in maintaining confidence in the Fund.
Mr Tubuna also acknowledged the Fund’s positive performance during the review period. He said despite ongoing sector-wide challenges, the Fund recorded improved profitability, maintained a stable lending portfolio, strengthened its investment position, and continued to pursue initiatives aimed at enhancing its long-term sustainability.
Mr Tubuna said they also noted the ongoing review of the Sugar Cane Growers Fund Act 1984.
He said evidence received during the review highlighted the need to modernise the legislative framework governing the Fund to strengthen governance arrangements, improve institutional flexibility, support innovation, and diversification.
“Throughout the review, the Committee observed that many of the challenges faced by SCGF are intrinsically linked to broader issues confronting the sugar industry, including uncertainty surrounding agricultural leases, rising production costs, labour shortages, declining participation of younger generations in farming, climate-related impacts, and the need for stronger coordination among industry institutions.”
