Why penalise cane farmers for FSC’s incompetence?

[posted 28 July 2010,1530]

It is iniquitous for FSC to penalise Ba cane farmers for its own inability to fix defects at the troubled Rarawai Mill, as it should under the Master Award.

Cane farmers in the Ba Mill area are being urged by FSC “to cart their cane to Lautoka if they have the financial means”. Or to Penang if they live in Tavua. (FT 28/7/10)

This is a gross injustice. These farmers signed a Memorandum of Gang Agreement (MOGA) with FSC at the beginning of the season to deliver their cane to the Rarawai Mill.

The additional cost of now carting the cane to the Lautoka or Penang mills should then be borne by FSC and not the farmers. This is FSC’s responsibility under the agreement.

The Rarawai Mill has been malfunctioning since the start of the season. In the first week of crush, it produced no sugar. Since then it has been operating at a shocking TCTS of 30 tonnes of cane to one tonne sugar (30:1).

Last year, it was one of the worst performing mills. But at the start of the 2010 season, both FSC chairman Gautam Ram Swarup and chief executive Deo Saran had assured cane farmers that problems at the mill had been fixed and it should run smoothly this season.

Cane farmers of Labasa are experiencing similar difficulties and incurring unnecessary harvesting costs because of the incessant breakdown of the Labasa Mill. It’s the same story – long lorry queues at the mill, extremely poor sugar recovery (TCTS of 20:1).

The loss to the industry would again be in the region of $100 million this season if the prevailing situation does not improve.

Where are Gautam Ramswarup and Deo Saran now? Are they back yet from their London junket?

And why is the Sugar Ministry so silent about the magnitude of problems plaguing the Rarawai and Labasa Mills?