Cane production remains below the desired level of 2.5 million tonnes and continues to show a declining trend.
Standing Committee on Economic Affairs chairperson Sakiusa Tubuna made this statement while presenting the consolidated review report of the Fiji Sugar Corporation’s (FSC) 2020-2023 annual reports in Parliament last week.
Mr Tubuna said the sugar industry was crucial to Fiji’s economy and contributed about 0.9 per cent of the GDP and generated 5.7 per cent of domestic exports in 2022, according to the provisional data from the Reserve Bank of Fiji.
The chair said over the four years under review, the committee had noted a significant decline in cane production from 2020 to 2021, followed by a 16 per cent increase from 2021 to 2022.
He said the committee identified several factors which contributed to the decline in sugar production.
“These include the lack of interest by the farmers who perceive cane farming as unprofitable, inconsistent cane supply to the mill, resulting in underutilisation of mill capacity, decline in cane quality, non-existence of KPIs and non-renewal and absence of strategic plans to forecast the corporation’s future targets and outputs,” he said.
“The committee noted FSC’s reliance on government grants for its operation, given its debt levels and recurring losses.
“However, the committee strongly suggest that the corporation develops proper KPIs for all sugar related sectors to ensure the economic viability of the sector.”
