
The Minister for the Sugar Industry says that building a new mill in Rakiraki today will cost around $250 million.
Charan Jeath Singh says this will be very costly for the government and the Fiji Sugar Corporation when comparing this figure to the total sugar export earnings, which stood at only $300 million last year.
Singh says this raised concerns about viability and return on investment.
Sugar Minister Charan Jeath Singh.
He emphasises that a Rakiraki mill will need at least 150 tonnes of cane delivered hourly to be sustainable.
“At this point in time, we are asking farmers to grow new plots. Unless we have sufficient cane, there is no sense in building a mill. So, what we are saying is, let’s encourage them to plant more sugarcane.”
Singh highlighted a suggestion to build a new mill in Ba instead.
He states that investors proposed relocating the old Ba mill’s parts to Lautoka and constructing a new, flood-safe mill in Ba.
This new mill could crush about 7,000 tonnes of cane daily, handling sugarcane from Ba, Tavua, and Rakiraki for now.
Singh adds that Cabinet approved a report on a potential joint venture with a Chinese company for the mill.
The FSC can now negotiate and decide between independent construction or the joint venture.
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