National Federation Party leader and former Finance Minister Professor Biman Prasad has written to Sugar Minister Tomasi Tunabuna calling for an immediate government top-up to the recently announced forecast cane price, warning that the current rate could create instability in the sugar industry.
In a letter to the minister, Prasad said the forecast cane price of $57.40 per tonne announced last week was disappointing for farmers and was already being used as a political issue within the industry.
“The forecast cane price of $57.40 per tonne announced last week based on world sugar price which has shown a downward trend since last year is very low,” Prasad said.
“Obviously this will greatly disappoint farmers and could and is already being used as a political tool to create instability in the industry.”
Prasad noted that forecast prices had traditionally been lower than the final payments received by farmers because of government support measures and top-ups.
He urged Government to move quickly to provide certainty before harvesting begins.
“I request that we quickly decide on the top up so that the delivery payment is reasonable and farmers can prepare well for harvesting.”
Prasad said the delivery payment based on the current forecast price would be $34.44 per tonne, representing 60 per cent of the forecast price.
“The delivery payment based on forecast price is $34.44 per tonne which will not cover the production, harvesting and delivery costs that have already spiralled due to higher costs.”
He proposed an immediate government top-up of $10.56 per tonne, which would increase the delivery payment to $45 per tonne.
“I suggest we immediately announce a top up of $10.56 per tonne so that the delivery payment can be increased to $45 and which will be just enough to cover the initial cost.”
Prasad said such a move would help calm concerns among growers and remove uncertainty ahead of the crushing season.
“This will immediately put to rest the instability that this announcement has caused.”
The NFP leader also called for fuel subsidies for cane lorry operators and additional support for fertiliser and other agricultural inputs, saying such measures could form part of the Government’s broader response to the current fuel crisis.
“We should also consider fuel subsidies for lorry transport and additional subsidies on fertiliser and other agricultural inputs.”
Prasad further suggested that the Sugar Minister convene an urgent meeting of industry stakeholders to discuss support measures and ensure harvesting begins smoothly.
“I suggest you call a meeting of stakeholders immediately and see how we can provide certainty so that cane harvesting begins without any drama.”
He also urged the Fiji Sugar Corporation to ensure all mills are ready to begin crushing on schedule and called for priority to be given to growers in Tavua, Rakiraki and Ba who had cane left standing at the end of the previous season.
“Preference should be given to farmers who had cane leftover particularly in Tavua, Rakiraki and Ba from the last season so that they can get their share to the mills.”
