Sugarcane farmers can be rest assured that for the next 3 years they will receive $85 per tonne - AG

Sugarcane farmers can be rest assured that for the next three years they will receive $85 per tonne irrespective of how much the Fiji Sugar Corporation sells sugar for at the world market price.

This was clarified by the Minister for Economy, Aiyaz Sayed-Khaiyum while speaking at the Budget Roadshow at the Ba Civic Centre.

When asked by a sugarcane farmer to explain government’s plan of a stabilization fund for farmers in the sugar industry, Sayed-Khaiyum says at the end of this crushing season FSC can get $65 per tonne and farmers will receive $85 per tonne adding that the $20 per tonne difference will be funded through the stabilization fund.

Sayed-Khaiyum then went on to explain how the stabilization fund is brought about.

The Minister for Economy further explained that in the case the following year, FSC gets $100 a tonne, the sugarcane farmers will still receive $85 a tonne adding that the difference of which is the $15 surplus will be placed back in the stabilization fund in case the price for a tonne goes down the year after.

The government has allocated a total of $62.3m to the Ministry of Sugar Industry in the 2018/2019 national budget.