FSC rejects claims it alone is responsible for sugar industry woes

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The Fiji Sugar Corporation (FSC) has defended its role in the sugar industry, saying it is inaccurate to blame the Corporation alone for the sector’s challenges and insisting that improving grower returns will require cooperation across the entire value chain.

In a statement, FSC Chairman Nitya Reddy responded to recent public claims about cane prices and industry performance, reaffirming the Corporation’s commitment to transparency, accountability and working alongside cane growers.

Reddy acknowledged the financial pressures facing growers and said FSC recognised they deserved a fair return for their hard work.

“FSC acknowledges the financial pressures facing cane growers and agrees that they deserve a fair return for their hard work. As the backbone of Fiji’s sugar industry, growers remain central to the industry’s future, and FSC remains committed to working alongside them to strengthen the sector.”

However, he said recent statements seeking to attribute the industry’s problems solely to FSC failed to recognise the broader factors affecting production.

“While FSC accepts responsibility for improving its operational performance and has openly acknowledged the operational challenges experienced during the 2025 crushing season, it is neither accurate nor constructive to suggest that the industry’s performance is determined by mill operations alone.”

Reddy said the Tonnes Cane to Tonnes Sugar (TCTS) ratio is influenced by several factors, including cane quality, cane maturity, burnt cane, weather conditions, harvesting delays and mill performance.

He said improving sugar recovery required coordinated efforts from growers, harvesters, transport operators and the mills.

The FSC chairman also said significant maintenance and operational preparedness works had been completed ahead of the 2026 crushing season and that all three sugar mills were ready to receive cane.

“The Corporation remains committed to continually improving mill reliability and operational efficiency to support growers and maximise industry returns.”

Reddy also sought to clarify that the forecast cane price is not determined by FSC alone.

He said the price is established through a transparent process involving representatives of both growers and FSC under the provisions of the Master Award, using agreed assumptions relating to crop estimates, sugar production, cane quality, TCTS, market prices and foreign exchange movements before certification by the Sugar Industry Tribunal.

He added that Government investment in the sugar industry extends beyond the operations of FSC, supporting thousands of growers, employees, contractors, transport operators and rural communities while maintaining Fiji’s export commitments and critical industry infrastructure.

Looking ahead, Reddy said sustainable improvements in grower returns would depend on stronger performance across the industry.

“FSC believes that the challenges confronting the sugar industry require shared responsibility and practical solutions rather than the allocation of blame.”

With the 2026 crushing season now underway, Reddy urged growers to begin harvesting without further delay, warning that continued delays increase the risk of declining cane quality, lower sugar recovery, higher harvesting and transport costs, labour shortages and cane remaining unharvested at the end of the season.

“Continued delays increase the risk of declining cane quality, reduced sugar recovery, higher harvesting and transport costs, labour shortages and cane remaining unharvested at the end of the season, ultimately affecting growers, FSC and the national economy alike.”