Karan Tells: Years of Sugar Help
Permanent Secretary for Sugar, Yogesh Karan has outlined all the assistance Government has provided to the ailing sugar industry over the years.
His explanation comes following days of commentary from Opposition criticising Government’s decision to scale back the guaranteed cane payment of up to $82 per tonne to $70. “Government has provided total of $64.4 million towards top up payment to ensure that our sugarcane growers receive a price of $82 per tons of Cane for 2014 to 2017 Crops.
If government has not paid, then our farmers would have received on average around $72/ per ton.
“Let me give you comparison between what growers received with Government top-up price and what would they have received without government topup price each year since 2014 crops (See Table 2).
Guaranteed price of $85 per ton of Cane - 2018-2020 Crops
Government and Fiji Sugar Corporation were in arrangement that FSC will pay for the 2018 crops and 2019 and 2020 crops to be paid by Government. “For 2018 crops – FSC has injected total of $18.6m ($10.98 per ton of cane) to ensure that our growers receive guaranteed price of $85 per ton of cane. If FSC has not paid $10.98 per ton of cane, then our growers would have received only $74.02
“The forecast price for the 2019 crops was $56.81 per ton of cane. However the growers have already received $75.26 as cane payment for 2019 crops.
“This has cost government more than $33m.
“Additional $30m has been allocated in 2020-2021 Budget to ensure that growers would receive guaranteed price of $85 per ton of cane.
“However, the Government has also assisted the growers through a number of capital programmes.”
Cane Planting Grant Since 2016 $60.6m
To-date, for the Cane planting grant alone, government has injected $60.6m over the last year to assist farmers with preparation of land of cane.
Fertiliser Subsidy
Government has provided total of $56m for fertiliser subsidy supplying more than 4.4m bags of fertiliser over the last five year period.
Government is providing 56 per cent subsidy on every bag of fertiliser that the sugarcane growers are buying. That is for every bag of fertiliser that a grower buys, he/she only pays $20 per bag while government is paying is $25.59.
It also means that at this cost, for every two bags of fertiliser a grower purchases, he gets a bag of fertiliser free.
“For instance in Ratoon crops, it is recommended that a grower should apply 15 to 18 bag of Blend C per hectare.
“If a grower procures 15 bags then he saves $378.75 directly.
“Similarly if the farmer has 10 hectares of ratoon cane than he saves $3,787.50. - The saving increases on bigger scale of farm,” he explained.
Weedicides Subsidy
In 2018, Government introduced weedicides subsidy. Since then, total of $13.1m was provided for four approved weedicides.
Again here, the Government is paying 55 per cent of cost of the weedicides, while growers pay 45 per cent.
Farm Mechanisation Grant
In 2016, Sugar Industry had 23 sugarcane harvesters which harvested 9 per cent of total cane produced (1.3 million tons of cane).
In 2019, a total of 87 harvesters were used to harvest approximately 35 per cent of total sugarcane produced in 2019 (1.8 million tons of cane).
In 2020 harvesting season, a total of 50 government funded harvesters will be in operation.
“In addition, total of 21 cooperatives were also assisted to procure tractor with Implements. “A sum of $5.4m was utilised to assist these 71 Co-operatives through Farm Mechanisation Grant.”
Cane Access Road
A total of 2,869 cane access roads (3,792 km) of roads were repaired in 2016. The Number of roads repaired in 2019 was 3,279 roads (3,876 km) - an increase of 410 roads (84 km).
“A total of 6,367 culverts have been provided to sugarcane growers since 2016 to 2019 while a total of 86 crossing have been constructed since 2016 to 2019 to assist sugarcane growers to transport its cane to the mills.
“For 2020 crushing season, total of 4,150 km of roads will be upgraded, an additional 200 culverts and 5 additional crossing would be constructed to assist the sugarcane farmers.”
All the cost of culverts, road upgrading and construction of bridges are met by the government.
This has cost Government $16.9 million since 2016.
Small Grant Assistance
433 farmers has been assisted with maximum grant of $15,000 through small grant assistance scheme under three broad areas: i.Farm Machineries, implements, tools - 239 farmers were assisted
ii.Irrigation, borehole – 133 farmers assisted
iii.Fencing materials – 61 Farmers
Out of 433 farmers assisted, 228 (53 per cent) farmers are from Northern Division while 202 (47 per cent) are from Western Division.
The total cost to assist these 433 was $2m
New Farmers Assistance
“To-date, the Ministry has assisted total of 268 new farmers through New Farmers Assistance scheme totaling $1.5m to acquire land leases and establish farm.
“I have noted that I-Taukei farmers have also started to show interest in the sugar industry as 30 per cent out of 268 new farmers assisted were I-Taukei farmers. This is a positive sign for the industry.”
Total Assistance to Growers
“Over the last five year period, records show that $299 million has been injected by Government which was directly channelled to growers.
“Growers would have been receiving more than $130 per tons of cane if all grant funds currently provided were directly paid as cane price.”