Responding to a question from farmer Merenaisi Waqavakatoga on measures to keep sugarcane prices attractive, Tunabuna said the returns received by farmers depend on the price of sugar in the export markets served by Fiji.

“The price paid for sugarcane is determined by the price of sugar in the markets where our product is sold,” he said.

Tunabuna explained that Fiji currently produces raw sugar, which is sold in the global raw sugar market. As a result, the income earned by farmers is directly linked to the value realised from those sales.

“The payment farmers receive for their sugarcane depends on how the cane is processed and the market in which the sugar is sold,” he said.

The minister said the government had provided a top-up payment this year to ensure farmers received the guaranteed minimum price of FJ$85 per tonne.

He clarified that the top-up payment is separate from government support provided through subsidies for fertilisers, agricultural chemicals and other farming inputs.

Tunabuna said that if global sugar prices fall further, the government would have to increase its financial support to maintain the guaranteed minimum cane price.

He added that even when international sugar prices were lower in previous years, the government continued to pay farmers more than the guaranteed minimum of FJ$85 per tonne.

The minister said improving farmers’ incomes would also require reducing production costs and increasing returns from sugarcane cultivation.

He encouraged growers to diversify into other crops to supplement their sugarcane earnings and reduce the impact of rising production costs.

Tunabuna added that the Fiji Sugar Corporation would provide further details on deductions related to fertiliser and other assistance schemes.

The consultation meeting gave farmers an opportunity to raise concerns over cane pricing and gain a better understanding of how sugarcane payments are calculated.