Fiji Rice to Assist Farmers To Increase Its Production
Fiji Rice Pte Limited is embarking on increasing rice production on Vanua Levu. The company looks to increase yield this year to 1200 tonnes for milling through new incentives for farmers. The company’s board has also agreed to include a financing arm of the company, beginning with $500,000 that would help rice farmers for increase rice production.
Vanua Levu farmers last year supplied 982 tonnes of rice to Fiji Rice Pte
Limited, but company chairman Raj Sharma said they have plans in place to increase production.
“Our recent board meeting has agreed that we have to support the farmers in the planting of rice with tractors, machines and labour.”
The areas that supply rice to the company in Vanua Levu includes 36 acres in Bua, 18 acres in Navidamu, Seaqaqa and the Labasa area which includes 30 acres in Tabia, 10 acres in Vunivutu and five acres in Cawaira. Mr Sharma said the company had assisted farmers in the planting of rice in these areas with 150 acres more belonging to Fiji Rice Limited.
“So we are expecting 1200 tonnes this year.
“Presently we are providing tractors and labour to assist the farmers and these costs are deducted from their rice sales and the rest given to them,” he said.
Mr Sharma said farmers usually end up with around $400 per acre of rice in payment after deductions, as labour tractor and labour costs amounted to around $400 -$450 and rice was sold by the company at $800 per tonne.
This occurred every three months and a rice farmer had an average of around five acres of rice on their farms.
“So with $400 per acre, they usually collected around $2000 based on the five acre average per farm.
On the introduction of the financing arm for Fiji Rice, Mr Sharma said they would be looking at the necessary approvals.
“This is all being done to raise the production of rice in the country,” Mr Sharma said.
“Farmers can apply for loans and we will finance them.
Government
Mr Sharma said Government had provided a revolving facility of $100,000 which the company was using.
Mr Sharma said the loans would come with strict measures to stop any abuse and includes site inspections of rice development.
“For those wanting loans, we will inspect the farms and check the titles and get a contract signed that all rice produced on that farm would be sold to Fiji Rice Limited,” Mr Sharma said.