[Photo: FILE]

The Standing Committee on Economic Affairs’ review of the Fiji Sugar Corporation’s 2024 and 2025 annual reports highlights a sector under significant strain.

While presenting the report to parliament, Committee Chair Sakiusa Tubuna stated that FSC faces deep-rooted structural, operational, and financial challenges.

He says that while FSC reported a net profit in 2025, the Committee finds that this does not reflect a genuine turnaround.

Instead, it is largely due to Government interventions and accounting adjustments.

Tubuna says beneath this headline figure lies a concerning reality of declining production, deteriorating infrastructure, and continued financial vulnerability.

He adds that sugar production has hit its lowest level in over a decade, driven by cane supply constraints, high levels of burnt cane, and inefficient harvesting and transport systems.

At the same time, Tubuna stresses that FSC remains heavily burdened by debt and dependent on ongoing Government support, raising serious concerns about its long-term viability.

The Committee also highlights systemic weaknesses in governance, asset management, and industry coordination.

Tubuna says chronic underinvestment has caused infrastructure to deteriorate. Furthermore, diversification initiatives remain largely aspirational without clear business cases or financing strategies.

He adds that the continued decline in the grower base and cane cultivation area poses a direct threat to the industry. Without urgent interventions to restore farming viability and grower confidence, production targets will remain unattainable.

According to Tubuna, a major problem for farmers is that production costs are too high for a standard 10-hectare farm—a size limit set in the 1960s.

In addition, 80 percent of the farmers supply just 20 percent of the total cane to the mill, while a mere 20 percent of growers produce 80 percent of the total tonnage.

Low yields and rising costs have significantly hurt the industry’s competitiveness.

Despite these challenges, the Committee acknowledges FSC’s efforts to sustain operations, including steps toward mechanization, digitalization, and potential product diversification.

Tubuna says these early-stage initiatives provide a foundation for meaningful reform.

However, the Committee emphasizes that minor adjustments will not be enough.

The report points to the need for decisive, coordinated reform encompassing strengthened governance, improved accountability, strategic investments, and a fundamental reassessment of the industry’s business model.

The recommendations are directed at restoring operational discipline, improving transparency, reducing fiscal exposure, and enabling a managed transition toward a sustainable, commercially viable industry.

This will require strong leadership and collaboration across Government, industry institutions, and growers.