Fiji’s sugar industry is now grappling with rising fuel costs, adding further strain to farmers already dealing with declining production and labor shortages.

Chief Executive of the Sugar Cane Growers Fund Raj Sharma says while the industry is not collapsing, the increasing cost of fuel is directly impacting farmers’ profitability and operations.

He explains that higher fuel prices are driving up the cost of harvesting, transportation, and overall farm management, reducing the income that ultimately reaches growers.

Sharma says this comes at a time when global sugar prices have already dropped significantly, placing additional financial pressure on the sector.

He adds that farmers are now facing a combination of challenges, including expiring land leases, limited access to labor, and rising operational costs.

“The whole of the agricultural sector has some challenges when we look at access to market, access to credit, suppliers, market, quality of suppliers.”

Sharma notes that increasing fuel prices will also affect farmers’ ability to service loans, as reduced earnings make it harder to meet financial commitments.

He says the Growers Fund is closely monitoring the situation and stands ready to support farmers facing hardship, provided there are sustainable repayment plans in place.

Despite these challenges, Sharma maintains that the sugar industry remains resilient and will continue to play a role in Fiji’s economy.

However, he stresses that diversification and adaptation will be critical, as global economic pressures, including fuel costs and external shocks, continue to impact agricultural sectors worldwide.

Sharma adds that while the industry faces uncertainty, it is expected to stabilize over time, but only if key challenges are addressed.