Minister for Finance Esrom Immanuel (middle) and Minister for Foreign Affairs Sakiasi Ditoka (third from right)at opening the Non-Sugar Sector Research Open Day at the Koronivia Research Station. Picture: Apenisa Waqairadovu

The Ministry of Agriculture is expected to face reductions in the 2026-27 National Budget, despite being challenged to significantly increase its contribution to the economy.

Minister for Finance Esrom Immanuel revealed the planned funding cuts while opening the Non-Sugar Sector Research Open Day at the Koronivia Research Station this morning.

The Ministry of Agriculture, Waterways and Sugar Industry received a record allocation of $115 million in the current financial year, but Immanuel says financial pressures linked to the fuel crisis will force the government to scale back spending.

“Unfortunately, because of the fuel crisis, we’ll have to see some cuts for this next financial year.”

The announcement comes just days before the National Budget is delivered.

Despite signaling reduced funding, the Minister challenged the sector to play a larger role in driving economic growth.

Immanuel says agriculture currently contributes only seven to eight percent of Fiji’s Gross Domestic Product, including sugar, despite recording average growth of about 5.4 percent over the past decade.

He called on the sector to lift its contribution to between 16 and 18 percent of GDP.

“I wish to challenge you if you can double that growth from around seven to eight percent to around 16 to 18 percent.”

Immanuel stressed that agriculture remains critical to the government’s long-term target of achieving annual economic growth of more than five to six percent.

The minister also defended continued investment in agricultural research, saying every dollar spent on research helps protect the economy from future disaster costs, strengthens food security and reduces dependence on imported food.

The Minister also stressed that the Non-Sugar Sector Research Open Day highlighted ongoing work in crop development, seed production, rice research and disease surveillance aimed at boosting productivity and strengthening resilience across the sector.

The government is expected to reveal the extent of the Agriculture Ministry’s budget reduction next Friday.