NFU will oppose any moves to reduce growers’ share
 of sugar proceeds

[posted 7Oct 2011,1600]

The National Farmers Union has warned that it will oppose any moves by the Fiji Sugar Corporation to reduce the incomes of cane growers by slashing their share of sugar proceeds.

According to recent media reports, FSC chairman Abdul Khan has stated that FSC would seek to reduce the growers’ share of the proceeds from 70% to 55% in return for taking over responsibility for the haulage of cane from the farm to the mill.

This proposition has not been discussed with the genuine representatives of the growers. As such, its imposition without due consultation and agreement of the growers will not be acceptable.

The Sugar Cane Growers Council (SCGC) is no longer recognized by the growers as an organization representing their interests. With the unilateral dismissal of the elected councillors and other changes made in the administration of the SCGC, it has been reduced to being an agency of the State and the FSC.

FSC is hardly able to organize its affairs to keep its own mills functioning efficiently. How can it then be expected to undertake such a mammoth task as delivery of cane at all the mills with due efficiency.

We already have a worrying situation where farmers are exiting the industry because of rising costs and falling returns. Only last week Commissioner Western Joeli Cawaki confirmed as much in media reports. We have seen cane production slide from 3.23m tonnes in 2006 to 1.78m tonnes in 2010.

Any attempt to reduce the farmers’ share of the proceeds unilaterally will further escalate this exodus. As things stand, the industry is not financially sustainable. This is clearly reflected in the huge losses chalked up by FSC over the last several years, to the point of insolvency.

The NFU says it will await further developments in the matter and will make appropriate representations to the authorities here as well as to the European Commission (EC), should it become necessary. All of Fiji’s sugar exports are consigned to the European Market under a long term agreement between FSC and Tate & Lyle Sugar.

If anyone thinks that he can keep FSC afloat by squeezing out the grower, then he is gravely mistaken. It is the primary producer we must look after if the industry is to expand and remain viable.

LR Vayeshnoi