The Fiji Sugar Corporation has warned that the nation’s sugar supply could come under threat from early July if cane harvesting gangs do not submit their Memorandum of Gang Agreement (MOGA) and begin harvesting.
Appearing before the Parliamentary Standing Committee on Economic Affairs, FSC chief operating officer Mikaele Biukoto said only about five to six percent of harvesting gangs in Viti Levu and Labasa had submitted agreements, a figure far below previous years.
“Submission, that’s what we’re waiting for, for those to indicate that they are ready to harvest,” Mr Biukoto said.
“The figure hasn’t changed so much from yesterday, so basically still around that five to six percent for the two mills in Viti Levu and also in Labasa compared to the previous years.”
Mr Biukoto said FSC is still planning for the Rarawai Mill to commence crushing on June 16 but will closely monitor MOGA submissions over the weekend.
“At the moment, we’re looking at Rarawai to start on the 16th. We will wait for the MOGA update today,” he said.
He expressed hope that the revised delivery payment of $47 per tonne announced on Thursday night would encourage harvesting gangs to convene meetings and commit to harvesting.
“We hope that the announcement of the increasing delivery pay that happened last night will trigger something out there in the field because the gangs will have to follow their gang constitution and call a meeting,” he said.
Mr Biukoto said gangs would need to assess whether the revised payment made harvesting financially viable for their members.
“We are hoping that with that $47 they will be able to work out some numbers for their individual tasks and get the gangs to agree on some numbers and submit.”
However, he warned that failure to secure more sign-ups could force FSC to delay the crushing season, similar to what occurred with the Lautoka Mill.
“If it doesn’t, then it will be similar to what we did for Lautoka, where we will call for deferment of crush, which will threaten us in terms of our supply to the nation from early July.”
The warning comes as growers continue to push for a delivery payment of $60 per tonne, arguing that harvesting and transportation costs in some areas exceed the revised $47 rate.
