GROWERS operating mechanical harvesters could be forced to ground their machines under the new $20.52 rate announced by the Fijian Competition and Consumer Commission.
Reduced by $4.11 from $24.63, growers heavily dependent on the harvesters have called on authorities to look into what they say could put place more pressure on the industry.
Lautoka Sugarcane Producers Association chairperson Bala Dass said there was no consultation carried out between industry stakeholders and FCCC.
“This is the kind of problems that is putting the sugar industry further down,” said Mr Dass.
“How did they calculate this price?
“They did not conduct any consultations with the farmers with the Sugar Cane Growers Council, the Sugar Industry Tribunal. With immediate effect they put it to $20.52 and we the machine operators and the farmers are not happy with it. We are going to have a meeting soon to discuss this because this could force us to ground our machines.
“We will not make any profit from this new rate. We will fork out money from our own pockets because the maintenance costs are too high.”
Sugar Cane Growers Council CEO Vimal Dutt said while growers hiring the machines stood benefit from the new rate, cooperatives made up of farmers were on the losing end of the new fee.
“On one side, the grower will benefit because they are paying a cheaper rate but on the other side, we have our cooperative that has concerns about the rate being too low,” said Mr Dutt.
“It is a concern and we need to have a discussion about it with all of the relevant stakeholders.”
In a statement, FCCC explained following an independent assessment and the recent decline in fuel prices noted in Fiji, the Commission revised the Mechanical Harvesting Rates by 16.7 per cent, decreasing from the current authorised interim rates of $24.63 per tonne to $20.52 per tonne.
“These interim measures are intended to ensure that the authorised rates remain aligned with current operating costs while supporting the continued sustainability of harvesting and transportation services.”
