Prime Minister Sitiveni Rabuka says Government subsidies cannot remain the permanent foundation of Fiji’s sugar industry, warning that major reforms are needed to secure its long-term survival.
Speaking in Parliament last week during debate on the Review Report on the Sugar Industry, Mr Rabuka said the sector continued to face serious structural challenges despite millions of dollars in Government assistance.
“While these interventions demonstrate Government’s commitment, subsidies cannot remain the permanent foundation of the industry,” he said.
“Our priority must be to strengthen productivity, improve commercial performance and progressively reduce dependence on Government assistance.”
Mr Rabuka said the industry remained an important pillar of Fiji’s agricultural economy, supporting thousands of farming families, rural livelihoods, employment and export earnings.
However, he acknowledged that declining cane production, ageing milling infrastructure, rising production costs, labour shortages, land tenure uncertainties and financial constraints continued to affect the sector.
He said limited diversification was another challenge threatening the industry’s long-term sustainability.
“Government recognises that these challenges require more than short-term interventions,” Mr Rabuka said.
“We must protect growers’ livelihoods while addressing the structural weaknesses affecting productivity, profitability and long-term sustainability.”
The Prime Minister revealed that Government provided approximately $36.5 million in assistance for the 2025 crushing season through a $22-per-tonne top-up to support the guaranteed minimum cane price of $85 per tonne.
He said following the final payment of $6.06 per tonne scheduled for October 30, 2026, the total payout reached $86.94 per tonne.
For the 2026 crushing season, Government has again guaranteed a minimum cane price of $85 per tonne to provide farmers with greater income certainty amid rising production costs.
Mr Rabuka said while financial support remained necessary to protect growers, the industry’s future depended on improving productivity, profitability and commercial performance.
He stressed that Government’s approach must focus on reform, recovery and transformation rather than continued reliance on subsidies.
