Who am I
I JOINED the Fiji Sugar Corporation Ltd (FSC) in 1971. Mostly because of the attractive salary compared with “cadet” salary in the civil service.
My first posting was to Lautoka mill as a junior field officer. I was one of 15 recruited by the FSC for training as a field officer or “Columbar” as was commonly known then under the Colonial Sugar Refining Company Ltd (CSR).
The word “Columbar” was mistakenly coined by indentured labourers from the words “call your number” the roll call every morning by the CSR sahib.
The indentured labourers or canefarmers were given numbers as their identity by the CSR officer. Ironically, after 135 years in Fiji, the 2014 General Election introduced ID numbers for candidates on ballot papers instead of names. For humans to be given ID numbers is very demeaning. I was given the number 333 by the Fijian Elections Office.
I served the FSC for 21 years as a field officer, traffic officer and estate officer. Resigned in 1992 to join the Sugar Cane Growers Council as a district manager and later in 2000 was appointed as chief executive officer. It was my dream to champion the course of the farmers. In my tenure, many services were provided to the canefarmers of Fiji namely legal services, medical insurance, good will grants, farm inputs etc.
I was removed in January 2007 for writing a letter to the then prime minister Laisenia Qarase and the president of the Republic of Fiji, calling on them to resolve the impasse between the government and the military commander, failing which the sugar industry would lose the $350m EU grant earmarked to reform the Fiji sugar industry.
I was later terminated by the President of the Republic of Fiji by Decree No. 1. This action was followed by my second termination by the newly-appointed Sugar Cane Growers Council board on the directive of the then interim Minister for Sugar.
Fiji Sugar:
The past
The CSR decided to sell the four sugar mills and all its assets and leave Fiji. This decision was as a result of the “Award” by Lord Denning in 1969. CSR announced that the 70/30 sharing formula for net sugar proceeds was not unacceptable.
Farmers and their leaders were jubilant with the “Denning Award” and the “sharing formula” that will get canefarmers better price of cane compared with the “Eve Contract” that offered 60/40 sharing formula. The award not only recognised the farmers, but also made the miller accountable. The morale of the farmers was high.
The CSR left Fiji transferring its assets to SPSM and later to Fiji Sugar Corporation Ltd.
The CSR exited the industry in 1969, leaving behind the cane/sugar production record of 2,376,922 tonnes cane/304,045 tonnes sugar. By 1979, with local staff, the industry registered a cane/sugar production of 4,058,251 tonnes cane/473,181 tonnes sugar.
In 1989, the cane/sugar production had reached 4,098,854 tonnes cane/460,601 tonnes sugar. However, in 1998 because of prolonged drought, the production declined to 2,098,493 tonnes cane/255,703 tonnes sugar.
Nonetheless, in 1999, within 12 months, under the “crop rehabilitation program” with $43m grant by the Rabuka government (the first ever by any government) the cane/sugar production bounced back to 3,958,138 tonnes cane crushed/376,501 tonnes sugar.
An estimated 500,000 tonnes cane was left standing in the fields as the mills were unable to crush. The Chaudhry government refused to compensate the farmers saying there was no provision in the Master Award.
This 4.5 million tonnes of cane was a record cane production in 1999. Suffice it to mention that the industry had earlier recorded the highest sugar production in 1994 registering 516,589 tonnes sugar.
There is no doubt that the industry, despite the small holding system, variable weather conditions, poor milling performances, was able to achieve the cane production levels expected between 1969 and 1999.
The problems of the industry started in 1999 post general election, when land leases expiring were not renewed, as a political backlash. Some 6500 farmers whose leases expired were displaced.
This was “human tragedy” at its worst. Production declined. Squatter settlements mushroomed. But the industry remained viable and had more than 18,000 active canegrowers when the number shrank dramatically after the 2006 coup. The question is why.
Between 2000 and 2005, despite the political instability, loss of production on arable cane land, exiting of experienced canefarmers, rising cost of production, 3.0-3.5 million tonnes cane/300,000 tonnes sugar was consolidated.
The industry was facing challenges that needed to be urgently addressed. The EU Sugar Reforms resulted in 36 per cent decline in the price of sugar effective from 2006 was imminent.
But the democratic government back then, together with the European Union were more than ready to ensure the industry remained vibrant and regained its annual cane production of 4 million tonnes of cane and 400,000 tonnes of sugar by 2010, largely because of the planned injection of $350m EU grant over a period of seven years from 2007. But the December 2006 coup derailed this plan together with the EU grant.
Playing the
blame game
The FijiFirst Government has consistently blamed politicians and the issue of expiring leases under the former SDL government for the ailing sugar industry. Firstly, the prime minister and Attorney-General have forgotten that they are also politicians. They have been in charge of the industry since September 2008. For 18 months after the coup the industry was led by another of their colleague who was a former PM until his exit from the regime.
The current Government forgets that it inherited an industry that produced 3.2 million tonnes of cane and 310,000 tonnes of sugar
They need to answer: Do they still think they are military appointed ministers despite being elected as politicians during the September 2014 General Election?
Furthermore, Government’s land lease renewal figures are different from statistics of the i-Taukei Land Trust Board.
On November 4, 2014, reforms undertaken by the Bainimarama Government in the sugar industry had resulted in the renewal of 6284 sugarcane land leases.
However, the official statistics from the i-Taukei Land Trust Board shows otherwise. The statistics show that from 1997 to 2014 8151 cane leases expired.
A further 1373 leases would have expired from 2014 until 2017 bringing the total to 9524. Only 5105 or 53.6 per cent of leases will have been renewed.
Past governments and politics have been blamed for the land lease problem. But between 2007 and 2014, when there was no democracy, 2899 cane leases expired. Out of this 1722 cane leases or 59 per cent have been renewed. Between 1997 and 2006, 5252 cane leases expired. 3001 cane leases or over 57 per cent leases were renewed. And under this Government’s stewardship from 2007 to 2018, 4272 leases will expire until 2017. And from 2007 until 2017, 2104 leases will be renewed. This is only 49.25 per cent rate of renewal.
Fiji sugar:
The present
In the face of the challenges facing the Fiji Sugar Industry, once again the canefarmers became the innocent victims of political power struggle. Once again, the military usurped the people’s government on December 5, 2006. My warning to the PM and President was not heeded. The EU Grant of $350m is largely lost. I have been vindicated.
Cane production in the 10 years, 2006-2016 declined from 3.2m tonnes to 1.4m tonnes. Cost of cane production has increased to $50 per tonne.
The FSC, the milling company in essence is financially bankrupt.
The FijiFirst Government’s decision to take total control over the Sugar Cane Growers Council, Sugar Cane Growers Fund, South Pacific Fertilisers Ltd, Sugar Industry Tribunal, Fiji Sugar Marketing, Sugar Research Institute of Fiji, has demonstrated its high handed approach in the industry.
The canefarmers have “no voice” and “no say” in the industry. The canefarmers have lost faith in the industry.
There is chaos in the decision making in the industry. In the 10 years, the FijiFirst Government has changed five FSC boards and four CEOs. The only consistent factor in the industry is the “Minister for Sugar” who has failed the industry.
Fiji sugar:
Future
The future of the sugar industry needs to be redefined. The Bainimarama Government has no ideas and must exit if the industry is to be salvaged. The FijiFirst Government time has run out. They had 10 years to address the problems facing the industry. They failed. They have pushed the farmers into an abyss.
Only new leadership at the helm can architect a new path to save the farmers and the industry.
The solution lies in the following:
1. the four sugar mills to be separate business entities;
2. canefarmers, Land Owners and Mill Workers to be offered shares in the milling companies (optional);
3. guaranteed minimum cane price for at least five years to canefarmers;
4. cane payments to be paid on monthly basis;
5. harvest and transport to be contracted to 3rd party; and
6. facilitate large scale mechanised farming.
* Jagannath Sani is the former CEO of the Sugar Cane Growers Council.
The views expressed here are his own and not of this newspaper.
