PS warns sugar sector is unsustainable

Fiji's sugar sector is no longer viable in its present state, warned Shiri Goundar, the Permanent Secretary for Finance. He stated that continued investment without a concrete recovery strategy is draining limited public resources and urged an end to the notion that government support alone can revitalize the industry.

Speaking at a post-budget forum in Nadi, Goundar highlighted the significant financial strain, noting that "We are running an insolvent FSC, which has taken a significant amount of taxpayer money, in the form of debt-related fees." He cautioned against unrealistic expectations, stating, "We should stop fooling ourselves about reviving this industry, because we can’t. It’s going to cost a billion dollars, if we try, and, if we realize after spending a billion dollars, that we aren’t reviving this industry, as Dr. Shakeel said, it takes their money down the drain." Goundar suggested these funds could be better allocated to critical national priorities like infrastructure development.

“

We are running an insolvent FSC, which has taken a significant amount of taxpayer money, in the form of debt-related fees. We should stop fooling ourselves about reviving this industry, because we can’t. It’s going to cost a billion dollars, if we try, and, if we realize after spending a billion dollars, that we aren’t reviving this industry, as Dr. Shakeel said, it takes their money down the drain.

However, Fiji Sugar Corporation Chief Executive Bhan Singh presented a different perspective, emphasizing the complexities of transitioning away from sugar. He questioned the viability of alternative crops, asking, "For any other alternative product that you put in the main belt areas, who is the market? Who is the buyer? Who will buy it?" Singh illustrated the potential pitfalls, explaining that a surge in demand for a single alternative, like eggplant, could drastically lower prices, leading to grower dissatisfaction. He argued that sugar, despite its challenges, remains a resilient crop compared to other options, particularly in its ability to recover from climate-related events.

Singh maintained that ongoing support and investment are essential to sustain the sugar industry and safeguard the livelihoods of the farmers dependent on it. The debate underscores a critical juncture for Fiji's agricultural sector, balancing the need for economic reform with the practical realities faced by its primary producers.

“

For any other alternative product that you put in the main belt areas, who is the market? Who is the buyer? Who will buy it? If everyone goes, say for example, eggplant, the price will go from $20 per kg to maybe $3 per kg. The grower will then complain again. There are many other examples like this. So, options have been tried, but sugar remains.