GOVERNMENT has been paying above the guaranteed cane price for the past two years, says Sugar Industry Minister Tomasi Tunabuna.
While acknowledging the concerns of cane growers across the country, Mr Tunabuna said Government was managing a number of issues including the abuse of government grants and a unpredictable fuel price market.
“The guaranteed price is the guaranteed price,” Mr Tunabuna said.
“The actual price they received over the last few years has been different from the guaranteed price.
“Why do we have to increase it to $110 when we have been paying well above $100?”
He said the sugar industry had been prioritised by Government for many years with incentives, grants and ongoing subsidies.
“We have given them well above what any government would have done to assist any of the agriculture sectors.
“In terms of subsidy, in terms of assistance and grants, in terms of even topping up.
“Just to top up is a different assistant all together. It has never been done to any other commodity in Fiji which we are still continuing to do.”
The Fijian Government allocated $96.3million to the sugar industry in the 2026–2027 National Budget. This represents a significant funding increase from the previous $72.2million to sustain production and guarantee payouts for farmers.
The budget breaks down the industry support into several key initiatives with the cane price guarantee of $85 per tonne for the crushing season.
Because the estimated market return is only $57 per tonne, the budget has set aside $41.6million to fund the top-up payment of about $28 per tonne for growers.
