MANY cane mechanical harvester operators in the North are still paying off loans with the Fiji Development Bank more than eight years after they were expected to be cleared.
Rising fuel prices and low operating returns are now expected to make repayments even more difficult for operators.
The Vanua Levu Cane Harvest and Lorry Association general secretary Mohammed Rafiq said most machine owners were expected to repay loans within five years, but increasing operating costs had made it difficult for many to meet repayments.
“We know that many loans were supposed to be repaid within five years, but some repayments are still ongoing after eight or nine years,” he said.
Mr Rafiq said harvesting rates had remained unchanged for the past four to five years despite increasing fuel and maintenance costs faced by operators.
“Cooperative machine owners currently received $18.90, while non-cooperative or private machine owners were paid $21.74, these rates are no longer sustainable.
“At the moment, no machine owner can continue operating under the old rates.”
The Fiji Development Bank regional manager Tevita Turagatani said the bank had extended repayment periods for many operators due to circumstances beyond their control, including adverse weather conditions.
“Most of the long term loan was five to seven years. We have extended it due to certain circumstances, some beyond control of the operators,” he said.
Mr Turagatani said the bank remained ready to support operators during the current rise in fuel prices.
“We will be assisting along that line as well, especially during this time of fuel issue that we are facing.”
He said the bank would continue to work with operators to support repayment arrangements as they navigated the rising operational costs.
