FLP Blames Government Policies for Sharp Decline in Sugar Industry

The Fiji Labour Party (FLP) has blamed poor government policies, unresolved land issues, and chronic mismanagement for the continued decline of Fiji’s sugar industry.

Labour Leader Mahendra Chaudhry criticized Sugar Minister Charan Jeath Singh’s repeated calls for low-producing farmers to vacate their land, saying the threats do nothing to solve the real problems affecting the industry.

“Threatening farmers is not the solution. The government must look at the root causes of the decline,” Chaudhry said.

According to the FLP, sugarcane production has plummeted over the past two years — from 1.63 million tonnes in 2022 to 1.56 million tonnes in 2023, and further down to 1.33 million tonnes in 2024.

This marks a significant reduction of 300,000 tonnes, despite the government’s efforts to revive the sector.

Chaudhry outlined several key issues contributing to the decline, starting with exorbitant lease premiums ranging from $40,000 to $60,000 that have forced many farmers out of the industry.

He added that frequent rent reviews and excessive demands by the iTaukei Land Trust Board (iTLTB), often ignoring provisions under the Agricultural Landlord and Tenants Act (ALTA), have made it harder for farmers to continue operating.

“This issue needs urgent attention, especially with 1,609 cane leases set to expire in the next five years. Access to land on reasonable terms with full security of tenure is absolutely essential if we want to attract investment and revive agriculture,” Chaudhry said.

The FLP also accused the government and the Fiji Sugar Corporation (FSC) of neglect, with farmers claiming they have not received promised cane planting grants. FSC reportedly told them that funds had run out.

Additionally, long-standing issues such as seawater intrusion into farms along the coastal plains of Labasa and Lautoka remain unresolved.

Chaudhry argued that dredging the estuaries, rather than repeated floodgate repairs, was the long-term solution to this problem.

Persistent milling issues have also worsened the situation, with frequent breakdowns leading to delays of up to 48 hours for lorries to unload cane.

This, he said, has negatively impacted the tonnes of cane per tonne of sugar (TCTS) ratio and driven many farmers away from cane farming.

“The FSC has failed to fix chronic milling problems that farmers have endured for years,” he added.

The deteriorating rail network, once vital for cane transport, has also contributed to the industry’s struggle, with many lines reduced or shut down entirely.

Chaudhry further questioned the government’s silence on the proposed new mill for Ra, which was meant to replace the Penang Mill destroyed by Cyclone Winston in 2016.

He said while there were talks of buying a second-hand mill from China, FSC has since declared the project unviable due to poor cane production.

“The government and FSC have failed with several strategic plans to revive the industry. Yet, they refuse to take advice from experienced people who are willing to help,” he said.

The FLP is now calling on the government to stop threatening farmers and instead focus on addressing the root causes of the industry’s decline.

This includes revisiting land policies, assisting struggling farmers, and bringing abandoned cane land back into production.

“The future looks bleak indeed for sugar under the Coalition,” Chaudhry said.