Salutation
Government Position: Reform, Recovery and Transformation.
1.0 Mister Speaker Sir, the sugar industry remains an important pillar of Fiji’s agricultural economy, supporting thousands of farming families, rural livelihoods, employment and export earnings.
2.0 However, the industry continues to face significant challenges, including declining cane production, ageing milling infrastructure, rising production costs, labour shortages, land tenure uncertainties, financial constraints and limited diversification.
3.0 Government recognises that these challenges require more than short-term interventions. We must protect growers’ livelihoods while addressing the structural weaknesses affecting productivity, profitability and long-term sustainability.
4.0 For the 2025 crushing season, Government provided a $22 per tonne top-up, amounting to approximately $36.5 million, to support the guaranteed minimum cane price of $85 per tonne. Following the final payment of $6.06 per tonne scheduled for 30 October 2026, the total payout reached $86.94 per tonne.
5.0 For the 2026 season, Government has again guaranteed a minimum cane price of $85 per tonne, providing growers with greater income certainty amid rising production costs.
6.0 While these interventions demonstrate Government’s commitment, subsidies cannot remain the permanent foundation of the industry. Our priority must be to strengthen productivity, improve commercial performance and progressively reduce dependence on Government assistance.
7.0 Our position is clear: protect our growers, rebuild the industry’s productive capacity and transform sugar into a modern, commercially sustainable and diversified sector.
Government’s Financial Commitment and Support to Growers
8.0 Mister Speaker Sir, Government’s commitment is reflected in the 2026–2027 National Budget, which provides $96.3 million for the sugar industry, compared with $72.2 million in the previous financial year.
9.0 This includes approximately $41.6 million towards the $28 per tonne Government top-up for the 2026 season and $30 million for grower support programmes covering fertiliser, weedicide, harvesting, cane access roads, planting grants and mechanisation.
10.0 Government has also increased manual harvesting assistance from $2 to $5 per tonne, with payment brought forward to the first delivery payment. The Fiji Corrections Service harvesting programme will also continue to support labour availability and timely harvesting.
11.0 In addition, $18 million has been allocated towards repayment of part of the Fiji Sugar Corporation’s loan from the Exim Bank of India.
12.0 These are significant public investments. Their effectiveness must be measured by tangible improvements in cane production, harvesting efficiency, mill performance and grower returns.
Findings from the Western and Northern Divisional Consultations
13.0 Mister Speaker Sir, Government’s consultations across the Western and Northern Divisions, together with the Advisory Committee’s deliberations, identified six priority areas requiring attention.
14.0 These priorities must guide the Government’s reform programme.
Modernisation and Structural Reform
15.0 Mister Speaker Sir, the future of the sugar industry requires a fundamental review of how it is structured, financed and managed. Government is progressing a multi-year reform programme focused on four areas.
16.0 FSC must become an efficient, commercially disciplined and financially sustainable enterprise. This requires modernising existing mills, improving maintenance, reducing breakdowns and increasing sugar recovery.
17.0 Government is also progressing plans for a new state-of-the-art sugar mill. This presents an opportunity to strengthen the industry’s long-term competitiveness. However, the investment must be supported by sound technical and commercial assessments covering its location, capacity, financing, cane supply and market viability.
18.0 Government will continue supporting improved farming practices, quality planting material, agricultural extension, cane rehabilitation and access to machinery.
19.0 Mechanisation must be accelerated to reduce harvesting costs, address labour shortages and increase productivity, while ensuring that smaller growers can also benefit.
20.0 The industry’s future must extend beyond traditional raw sugar production.
21.0 Government is exploring opportunities in ethanol, refined sugar, renewable energy and other biofuels, including sustainable aviation fuel, where commercially viable.
22.0 These opportunities can create additional export earnings, employment and energy security. However, they must be supported by feasibility studies, market assessments and responsible investment.
23.0 Government assistance must be complemented by stronger financial management, prudent borrowing and commercial accountability.
24.0 The financial support provided to FSC must be accompanied by a credible recovery programme that strengthens its capacity to meet obligations, maintain infrastructure and improve operational performance.
National Sugar Industry Transformation Strategy
25.0 Mister Speaker Sir, Government intends to progress a National Sugar Industry Transformation Strategy to bring together the various reform initiatives under one coordinated national framework.
26.0 The Strategy will address:
27.0 The Strategy must establish clear institutional responsibilities, financing requirements, implementation timelines and measurable targets for cane production, sugar recovery, mill efficiency and grower profitability.
28.0 Government will work with growers, landowners, industry institutions, the private sector and development partners to ensure that the Strategy is practical, commercially sound and nationally owned.
Accountability and Implementation
29.0 Mister Speaker Sir, the Ministry responsible for the sugar industry must coordinate a consolidated implementation framework covering the recommendations arising from the three reports, the divisional consultations and the Advisory Committee’s deliberations.
30.0 The framework must identify responsible institutions, actions, timelines, resource requirements and measurable outcomes.
31.0 It must also provide transparent reporting on cane payments, subsidy utilisation, production, mill performance and progress against agreed reforms.
32.0 Every institution must be accountable for its responsibilities, and public investment must deliver measurable benefits to growers and the wider economy.
Conclusion
33.0 Mister Speaker Sir, the three (3) reports before Parliament provide an important opportunity to strengthen the institutions and systems supporting the sugar industry.
34.0 Government acknowledges the contribution and sacrifices of our growers, workers and rural communities. Our commitment is reflected in the guaranteed cane price, financial assistance, harvesting support and the substantial allocations in the 2026–2027 National Budget.
35.0 However, financial assistance alone will not secure the industry’s future. We must improve productivity, modernise our mills, strengthen governance and create new opportunities through diversification and value addition.
36.0 The proposed new sugar mill and opportunities in ethanol, refined sugar and renewable energy provide a pathway towards a more competitive and diversified industry, supported by sound commercial assessments and responsible investment.
37.0 Mister Speaker, our objective is not simply to preserve the sugar industry in its current form. It is to rebuild its productive capacity, restore its commercial viability and transform it into a modern, diversified and competitive industry that delivers sustainable returns to growers, workers and the people of Fiji.
38.0 We must move from dependence on subsidies to stronger commercial performance, from ageing infrastructure to modern production systems, and from traditional raw sugar exports to higher-value products.
39.0 This is the reform agenda Government is committed to pursuing for the benefit of our growers, rural communities and future generations of Fijians.
40.0 I thank the Honourable Member for bringing these important reports before Parliament and look forward to the contributions of Honourable Members.
Vinaka vakalevu, Madam Speaker.
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