THE Fiji Sugar Corporation (FSC) carries a debt of approximately $330million and operates with negative equity, says chief executive officer Bhan Pratap Singh.
Speaking at the Dialogue Fiji National Budget Forum in Nadi on Saturday Mr Singh said the company continued to face increasing production costs.
“FSC remains exposed to fluctuations in global commodity prices and foreign exchange movements,” he said.
Recognising these challenges, Mr Singh said the Government had provided FSC with a $300million Government Guarantee Facility.
“This guarantee is far more than financial assistance. It provides FSC with access to working capital, enables critical rehabilitation and maintenance programs, supports timely payments to growers, strengthens confidence among our financiers and suppliers, and ultimately ensures the continuity of an industry that remains vital to Fiji’s economy.”
Mr Singh said it was important to understand the scale of FSC’s contribution to the national economy.
“Today, the industry supports more than 10,000 active cane growers and contributes to the livelihoods of more than approximately 200,000 Fijians.
“Sugar contributes approximately 0.5 per cent of Fiji’s GDP and accounts for 7.4 per cent of domestic exports.”
He said every dollar invested in the sugar industry circulates through the wider economy, supporting cane harvesters, transport operators, engineering firms, contractors, retailers, financial institutions, and countless small businesses that depend directly or indirectly on the industry.
