Fiji warns of sugar shortage as harvesting delays persist

Fiji could face a critical sugar shortage by the end of July if harvesting rates do not accelerate. The Fiji Sugar Corporation (FSC) has issued a stark warning, citing ongoing delays in farmer readiness as a primary cause for the slow start to the crushing season.

Mikaele Daukoto, FSC's Chief Operating Officer, informed the Standing Committee on Economic Affairs that mill operations are significantly behind schedule. Cane delivery readiness is alarmingly low, with some areas submitting as little as 4 percent of their Memorandum of Gang Agreement submissions, a stark contrast to the approximately 60 percent recorded last year. This situation is placing immense pressure on national sugar supply.

"If nothing changes over this weekend, we may have to defer crushing, which will threaten supply to the nation from early July," Daukoto stated. The planned start dates for Rarawai Mill (July 16) and Labasa Mill (July 17) are now in jeopardy.

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If nothing changes over this weekend, we may have to defer crushing, which will threaten supply to the nation from early July.

In an effort to boost farmer mobilization, the government announced an increase in cane delivery payments by five dollars per tonne. FSC Chief Executive Bhan Pratap Singh expressed hope that this financial incentive will encourage harvesting gangs to begin operations. However, Singh acknowledged that farmer participation remains a concern, with harvesting gangs slow to confirm their readiness.

Adding to the industry's challenges, Singh highlighted severe financial pressures, including rising debt levels and aging mill infrastructure. He warned that without substantial structural reforms or increased investment, the sugar industry will continue to struggle to meet its production targets.

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The delivery prices that they expected has been fulfilled last night through an additional funding of $5 per tonne and that is expected to help them start operations.