The Minister for Multi-Ethnic Affairs and Sugar Industry, Hon. Charan Jeath Singh, acknowledged two Food and Agriculture Organisation (FAO) consultants, Mr. Poonyth Daneswar and Mr. Jolly Lindsay, who recently concluded a comprehensive study on Fiji’s sugar industry.
The consultants were assigned at the cost of the FAO to conduct a comprehensive study of the sugar industry and provide a way forward for the sugar sector. During the four months of assignment, the consultants engaged with key stakeholders, including industry representatives and farmers, to gain critical insights into the sector’s operations and challenges.
Following their assessment, the FAO consultants made a presentation to the Ministry of Sugar Industry, including other government ministries and industry stakeholders on Monday 16 December 2024. During the presentation, they highlighted the current state of the industry and offered actionable recommendations for the industry’s revitalisation.
Key Findings include:
Declining Productivity and Production: Inefficient management along the supply chain and high production costs have hindered output.
Land Tenure Challenges: Unresolved issues related to expiring leases and underutilised land discourage investment and long-term planning.
Institutional Fragmentation: Overlapping roles among multiple entities have led to inefficiencies and delayed reforms.
Ineffectiveness of Government Assistance: Current government interventions have failed to reverse the industry’s decline.
Missed Diversification Opportunities: Heavy reliance on raw sugar exports has made the industry vulnerable to global price fluctuations, with untapped potential in ethanol production, biomass cogeneration, and other bio-products.
Climate Vulnerability: Increasingly severe weather events have disrupted production, underscoring the need for climate-resilient practices.
Recommendations include:
The FAO consultants have outlined strategic recommendations to address these challenges and secure the future of the sugar industry:
Integrated Governance Framework: Establish a unified governance model to streamline institutional roles, enhance coordination, and foster innovation.
Productivity Enhancement: Aim to increase yield to 60–65 tonnes of cane per hectare and improve cane quality to achieve a TCTS (tonnes of cane per tonne of sugar) ratio of 9.
Diversification into Renewables: Develop ethanol production and biomass cogeneration systems to create additional revenue streams and support Fiji’s decarbonisation goals.
Re-purposing Industry Assistance: Redirect government support towards renewable energy development, with a long-term goal of reducing dependency on assistance programs.
Land Tenure Reforms: Implement innovative land tenure models to provide security and encourage sustainable farming investments.
Cane Quality Payment System: Introduce payment structures based on cane quality to incentivise farmers to adopt best practices and prioritise high-sucrose crops.
Minister Singh expressed his gratitude to FAO’s technical support, emphasising the importance of their findings and recommendations in shaping a sustainable future for Fiji’s sugar industry. Hon. Singh stated that the report shall provide a plan for restructuring the sugar industry for its long-term viability and resilience.
The Coalition Government will now discuss the findings and the recommendations identified from the study.
The government’s priority remains to rejuvenate the sugar industry, ensuring it remains a cornerstone of Fiji’s economy while contributing to the nation’s sustainable development goals.