National Farmers Union: Actual cane price no longer viable for farmers
Cane farmers will not be able to survive on a cane price of $72.85 per tonne, says NFU general secretary Mahendra Chaudhry.
He was commenting on the final cane price of $72.85 for the 2016 season determined by the Sugar Industry Tribunal.
“Farmers must understand that the total cane payment of $82 per tonne is the result of a top up of $9.15 per tonne by the government.
“It is coming close to general elections and can be construed as a sweetner in return for their votes,” said Mr Chaudhry.
That aside, the stark reality is that the actual price is far short of the $100 per tonne that cane farmers have been demanding to remain financially viable,” he said.
In fact, farmers are unhappy that deductions have been made from the top up payment for fertilizer, loan repayments, land rent and harvesting expenses.
“This should not have been done as the top up is a grant and should be paid without industry related deductions,” Mr Chaudhry said.
The future looks grim considering the declining crop size and the harvesting, transportation and milling problems facing the industry as a whole, not to mention the financial woes of the Fiji Sugar Corporation.
“A totally new approach is warranted to rehabilitate the industry and this can only be achieved through genuine Tripartite involvement,” Mr Chaudhry said.
Cane farmers will not be able to survive on a cane price of $72.85 per tonne, says NFU general secretary Mahendra Chaudhry.
He was commenting on the final cane price of $72.85 for the 2016 season determined by the Sugar Industry Tribunal.
“Farmers must understand that the total cane payment of $82 per tonne is the result of a top up of $9.15 per tonne by the government.
“It is coming close to general elections and can be construed as a sweetner in return for their votes,” said Mr Chaudhry.
That aside, the stark reality is that the actual price is far short of the $100 per tonne that cane farmers have been demanding to remain financially viable,” he said.
In fact, farmers are unhappy that deductions have been made from the top up payment for fertilizer, loan repayments, land rent and harvesting expenses.
“This should not have been done as the top up is a grant and should be paid without industry related deductions,” Mr Chaudhry said.
The future looks grim considering the declining crop size and the harvesting, transportation and milling problems facing the industry as a whole, not to mention the financial woes of the Fiji Sugar Corporation.
“A totally new approach is warranted to rehabilitate the industry and this can only be achieved through genuine Tripartite involvement,” Mr Chaudhry said.
NFU: FSC's floundering finances
National Farmers Union has expressed strong concerns about Fiji Sugar Corporation’s financial position following its recent announcement of a major reduction in crop size for the 2017 season.
“The current crop is now estimated at 1.7m tonnes. This is a substantial drop from the 2.046 million tonnes announced at the beginning of the year. It translates into a sugar shortfall of about 35,000 tonnes which is virtually one shipment of sugar,” said NFU general secretary Mahendra Chaudhry.
“This is bad news for the industry as well as the economy and is likely to have an impact on the Reserve Bank’s growth figures for the year necessitating a downward revision,” he said.
Mr Chaudhry said NFU was worried because while FSC’s cash flow is drastically affected, despite this it has created at least half a dozen new top managerial positions at high salary levels.
We believe FSC is in dire financial straits. It owes $15m to the South Pacific Fertiliser Company. This is money it has already deducted from growers but has not passed on to SPFL as it should. It has also defaulted on its $5 million industry contribution to the Sugar Research Institute of Fiji.
“There is a disturbing lack of transparency in the operations of the Corporation. FSC’s annual general meeting is long overdue. It has not published its financial accounts for 2016 and the 2017 report is now due. Two years accounts are now due,” Mr Chaudhry said.
FSC must reveal the salaries of all its top executive staff. How much are they being paid? Our information is that their salaries, perks and allowances range from $600,000 at the top to $250,000 at the lower end.
The new positions are: Chief Operating Officer, Chief Corporate Officer, Chief Financial Officer and Chief Communications Officer. In addition, there is a General Manager Engineering Services, General Manager Mill Operations, Corporate Officer Supply Chain and Logistics.
FSC is also looking at creating the post of a Chief Agricultural Officer and three District Agricultural Officers.
“Comparatively speaking, there is not much difference between the old Abdul Khan order and the new order under Chief Executive Officer Graham Clark," said Mr Chaudhry.
National Farmers Union has expressed strong concerns about Fiji Sugar Corporation’s financial position following its recent announcement of a major reduction in crop size for the 2017 season.
“The current crop is now estimated at 1.7m tonnes. This is a substantial drop from the 2.046 million tonnes announced at the beginning of the year. It translates into a sugar shortfall of about 35,000 tonnes which is virtually one shipment of sugar,” said NFU general secretary Mahendra Chaudhry.
“This is bad news for the industry as well as the economy and is likely to have an impact on the Reserve Bank’s growth figures for the year necessitating a downward revision,” he said.
Mr Chaudhry said NFU was worried because while FSC’s cash flow is drastically affected, despite this it has created at least half a dozen new top managerial positions at high salary levels.
We believe FSC is in dire financial straits. It owes $15m to the South Pacific Fertiliser Company. This is money it has already deducted from growers but has not passed on to SPFL as it should. It has also defaulted on its $5 million industry contribution to the Sugar Research Institute of Fiji.
“There is a disturbing lack of transparency in the operations of the Corporation. FSC’s annual general meeting is long overdue. It has not published its financial accounts for 2016 and the 2017 report is now due. Two years accounts are now due,” Mr Chaudhry said.
FSC must reveal the salaries of all its top executive staff. How much are they being paid? Our information is that their salaries, perks and allowances range from $600,000 at the top to $250,000 at the lower end.
The new positions are: Chief Operating Officer, Chief Corporate Officer, Chief Financial Officer and Chief Communications Officer. In addition, there is a General Manager Engineering Services, General Manager Mill Operations, Corporate Officer Supply Chain and Logistics.
FSC is also looking at creating the post of a Chief Agricultural Officer and three District Agricultural Officers.
“Comparatively speaking, there is not much difference between the old Abdul Khan order and the new order under Chief Executive Officer Graham Clark," said Mr Chaudhry.
