Fiji Labour Party

Negotiate with us directly: Growers to Government
as the impasse in the cane crisis deepens

The financial crisis in the cane field has deepened for the farmer with FCCC today declaring a 30.3% increase in the cost of hiring a mechanical harvester.

And Growers have made it categorically clear that they will not harvest unless their demands are met.

They want government to come to the negotiating table and deal with the National Farmers Union, as the true representative of the farmers.

The growers’ stand hardened even more following FCCC’s decision to raise the hire rate for a harvester to $24.63pt from $18.90pt last year. The beleaguered farmer will have to fork out $5.73pt more to use a harvester this season.

Meanwhile, lorry, tractor and harvester operators have also rejected the $5m fuel subsidy announced last week by the government. They say the conditions are too onerous and the subsidy is only for a month and not the whole season – given the volatility in fuel prices.

Growers’ decision was taken at an NFU meeting in Sigatoka today. It adds to the mandate given to the Union by cane farmers at meetings throughout the Western cane belt and Labasa in the past several weeks.

Currently farmers are urging for a delivery price of $60pt to meet increased costs as a result of the fuel crisis. With the 30% increase in the cost of a harvester most growers will now be out of pocket by an additional $6-$7 pt.

It is a no-win situation for the farmer. As NFU general secretary Mahendra Chaudhry repeatedly points out the issue is one of economics, not politics. How can the grower be expected to harvest at such a huge loss?

The Sugar Minister is currently in Labasa urging farmers to move away from cane farming to other crops. The NFU has been advising FSC and the government for years to assist growers to diversify. The call was not heeded.

Today the Minister needs to be told that the current crisis affects a crop that is already in the field ready for the 2026 harvest. He needs to deal with that first.

This crop needs to be harvested and the grower is adamant not to do so given the huge financial loss he will incur.

To break the current impasse, growers want government to negotiate directly with their representatives. Not through media releases issued by third parties.

Below: NFU meeting at Sigatoka this morning

The issue is Economic. Not political, Mr Reddy

National Farmers Union calls on FSC chairman Nitya Reddy to respond to issues raised by the Union and not sidetrack the Union’s efforts to fight for justice and fair play for the cane farmers as mere ‘election politics’.

The current sugar crisis is simple: It is an economic issue. It is not political.

The growers themselves are determined not to harvest on a Delivery price of $47pt against the $60pt it will cost them – a loss of $13pt. To harvest would be financially suicidal.

In a long diatribe in the Fiji Times online (23/6/26) against NFU general secretary Mahendra Chaudhry, not once did Nitya Reddy reply to this basic issue of economics - loss to the growers.

Nor in his long sweeping statement did the chairman rebut issues raised by NFU that have led to the current crisis:

• FSC’s deteriorating milling problems which last season resulted in an average TCTS of 13 causing a $35m loss to the industry
• The 100,000 tonnes of cane left unharvested at season-end because of FSC’s inability to take in all the cane
• The fire at Rarawai Mill at the height of the season as a result of which the mill closed down for 3 months causing 80,000 tonnes of standover cane in the Ba Mill Area at season end - despite ministerial assurances that not a single stick of cane would be left unharvested.
• The fire damage resulted from FSC’s negligence causing a loss of 8000 tonnes of sugar valued at $8m

Yes, the Union has accused FSC executives of incompetence and mismanagement but we have cited reasons for saying so. It’s up to FSC to counter them. It has not done so.

Yes, the Union has referred to corruption at FSC. We disclosed the case of former CEO Abdul Khan’s super salary and benefits and other corrupt practices he engaged in. Although NFU provided evidence, to date no action has been taken on this. But so did the former Sugar Minister Charan Jeath Singh -we can cite the number of instances when he lashed out at corruption within FSC.

The National Farmers Union and its general secretary have been fighting for justice for cane farmers ever since its inception in 1978. Our criticism of FSC has targeted how cane farmers have suffered huge losses running into millions of dollars because of FSC’s failure to run its mills efficiently. The 2025 season stands as a classic example.

The Corporation is required under the Master Award to ensure its mills perform at optimum levels. It has failed to do this.

NFU will not stand by and watch growers being penalized for FSC’s failures. Mr Reddy accuses Mr Chaudhry of “weaponizing the cane farmers ahead of the elections”. The facts belie such false accusations:

NFU has written repeatedly to Sugar Ministers going back to 2021, if not earlier, highlighting problems faced by growers, seeking redress – from Bainimarama, to Charan Jeath Singh and most recently (December 2025 and May 2026) to Tomasi Tunabuna. Not one of them bothered to respond.

In our budget submission in June 2021 we had asked that the Minimum Guaranteed Price be increased to $102 per tonne effective from the 2022 season.

Had the government and its Ministers taken heed of our pleas, advice and suggestions the current crisis may have been avoided.

We have been calling for an all-industry conference for years to address problems. But NFU was deliberately kept out.

So do not accuse us of playing politics ahead of elections. If anything, it’s the government that has been playing politics with farmers’ unions and the growers themselves. Why have Sugar Cane Growers Council elections not been held despite promises made during the 2022 general elections?

The bottom line is that NFU will not allow growers to be exploited and penalized for FSC’s failures. Election or no election we have been with them since 1978 well before the Fiji Labour Party was launched.

Crisis: NFU replies to PM

As chairman of the Parliamentary Select Committee on Sugar, it is astounding that Prime Minister Sitiveni Rabuka should go around making statements that show how ill-informed he is about realities in the industry.

Else why would he refer to it as “a cow that is not giving any milk”, adding: “We have to come up with what … can be done for those farmers and the land that they are sitting on, which might be much better used instead of pouring money down the drain.” (Fiji Sun 21 June 2026)

Prime Minister, the NFU has pointed out repeatedly that the cane farmers are doing their part under gruelling circumstances including heavy financial losses, to produce cane.

Last season more than 80,000 tonnes of cane produced in the Ba Mill Area was unharvested due to a fire at the Rarawai Mill, forcing it to shut down for three months for repairs at the height of the season. The fire was caused by negligence on FSC’s part. Loss to the industry was 8000 tonnes of sugar valued at $8m.

“The ‘cows’ are producing, Prime Minister. The ‘milk is literally going down the drain due to FSC’s failure to run its mills efficiently,” countered NFU general secretary Mahendra Chaudhry.

“For the past three years its milling performance has deteriorated to the point where last year it used an average 13 tonnes of cane to make one tonne sugar. This is absolutely unacceptable given that the norm for the past several years was around 10 tonnes cane to a tonne of sugar.

“The loss to the industry and the nation was $35m. How can you in all fairness say that “the cow is not giving any milk? What gross injustice is this?” he asked.

For the past three years, FSC’s financial position has continued to decline markedly. Despite a $200m write off of its debts last year, it has incurred another $110m in debt since then.

It is the Fiji Sugar Corporation that has failed the industry through sheer incompetence and neglect. It is the Sugar Ministry that has failed the industry, and the farmers, by not holding FSC management and its board accountable for these failures.

“Why is your government turning a blind eye to the incompetence of the FSC executives? In any other corporate organisation, the Board and top management would have been sacked years ago for driving the company into virtual liquidation,” Mr Chaudhry questioned.

The Sugar Select committee was appointed a year ago tasked with “transforming the sugar industry into a modern and sustainable sector”.

The committee was required to undertake a comprehensive review and provide recommendations to be tabled in Parliament in its November sitting.

“This has not happened. Under your chairmanship the committee has not met so far. You also talked about holding an all-industry conference to address problems facing it. This has also not happened. Now you are going around making misinformed statements on the advice of those who have vested interests in protecting their own highly paid jobs.

“Prime Minister, just making lofty statements and passing on the blame to the cane farmers who are struggling to meet their part of the contract, is not going to ensure the sustainability of the sugar industry.

“We must get to grips with the real issues. We need an honest, hands on approach by people who are capable of delivering results. The first step is to hold the executives of FSC accountable for its failures. Those who can’t deliver ought to be shown the door.

“For your part, you should convene the Select Committee and the all-industry conference without delay.

“That may well be the beginning of an inclusive approach to effectively address the problems of the Industry,” said Mr Chaudhry.

Farmers are victims of govt. neglect and policies: NFU

It is not the farmers who are living off taxpayers as claimed by the Sugar Minister. It is the Fiji Sugar Corporation, NFU general secretary Mahendra Chaudhry told a meeting in Ra today.

“Government has written off almost $1billion in FSC debts in the last 20 years or so while farmers problems are being ignored. They are being criticised for wanting what is owed to them legitimately,” he said.

Mr Chaudhry told Ra farmers, growers were the innocent victims of almost two decades of government interference in the sugar industry. And the failure of successive governments to address major problems besetting it.

For two decades, the sugar industry has been in steady decline. These governments have poured money into FSC while failing to address its chronic operational failures. The mills continue to perform poorly, yet the executives responsible for this are not held accountable.

Changes brought about by the Bainimarama administration completely marginalised the growers, leaving them with no redress for their grievances.

“That is why you are in this predicament today,” he told the growers.

The current Coalition government came into power promising to restore Growers Council elections and to revive the sugar industry. But in fact, have done nothing.

“It is now bent on killing the industry, criticising the growers for making legitimate demands just to survive.

Mr Chaudhry said farmers were facing enormous difficulties in getting lease renewals with demands for exorbitant premiums and goodwill payments.

“ It’s not only the cane farmers who are being ignored. In Taveuni, farmers have for years complained of huge losses suffered by their crops being stolen. The Police are just turning a blind eye.

“It is time for the farmers to wake up. You are not asking for favours. You want justice. You must be treated with respect,” Mr Chaudhry said.

FSC must admit its failures

The Fiji Labour Party rejects the Fiji Sugar Corporation’s attempt to dismiss legitimate concerns about excessive executive remuneration as false.

Cane farmers are now forced to carry the cost of its prodigality, and financial and operational mismanagement.

The FSC’s claim that no bonuses have been paid for the past ten years is misleading. In 2020 alone, five senior executives of the Corporation were paid a combined $1.3 million in remuneration.

During the Bainimarama government, one expatriate Chief Executive was paid close to $750,000 in a single year. These are not allegations — they are publicly recorded facts. The current Board cannot erase history by simply issuing a press release.

What is more damaging, however, is the FSC’s continued failure to address its own operational inefficiency.

The Corporation continues to operate at a tonnes of cane to tonne sugar (TCTS) ratio of 13 or higher , when a properly managed mill should be operating closer to 10.

Last year alone, this inefficiency resulted in the loss of more than 35,000 tonnes of sugar that should have been produced from the cane delivered by farmers.

This is not a small operational issue. It represents millions of dollars in lost revenue — losses that are ultimately passed on to cane growers through lower returns.

For years, the FSC has been losing money, receiving debt write-offs from the government, and paying its senior executives handsomely, while farmers continue to receive poor prices and are forced to accept the consequences of milling inefficiency.

The Corporation has treated cane farmers as though they exist only to absorb its failures. This must stop.
Instead of issuing defensive press statements, the FSC should focus on fixing its mills, improving efficiency.

Cane growers are not slaves to the Corporation. They are the backbone of an industry that has sustained this country for generations, and they deserve to be treated with basic respect and fairness.

Pic: NFU Ra meeting with cane farmers this morning in progress: Growers raise concerns

Stop dilly-dallying on the elections, Prime Minister!

Six months or less before the nation goes to the Polls, there is still considerable confusion and uncertainty regarding the rules under which the 2026/27 general elections will be held - or whether they will be held at all.

The Prime Minister’s usual dithering over issues adds to the uncertainty. One day he talks about going to Parliament to seek an extension, the next he refers to the constitutional requirement to hold elections before 6 February 2027.

We are supposed to be in campaign mode but the entire issue is in a shambles. This is typical of the haphazard manner in which the Coalition has governed the nation since it took office.

They spent the first three years or so enjoying the perks of office – frequent overseas jaunts, wining and dining at posh hotels and resorts attending so-called conferences and seminars – and now in the final year they try to accomplish the impossible.

The government is now rushing to hold consultations on a review of the 2013 Constitution, debate the changes in Parliament, hold a possible national referendum after that, and then enact the changes – all before the next general elections.

The process cannot possibly be rushed through in a couple of months. Time will also be needed for voter education and awareness programmes.

Labour is also concerned at the appropriateness of members of the Constitution Review Commission going public and making comments on submissions made to them.

Meanwhile, a report on recommended changes to the Electoral Laws has been sitting in the Prime Minister’s office since early last year. He has not made this public. It makes one wonder whether he is sincere about bringing about changes to the system.

In any case, Electoral Laws cannot be changed without changes to the 2013 Constitution.

We believe, having left matters for so late, the government now has no choice but to hold elections under the current rules, announce a firm date for the Polls and get on with the process.

Changes to the electoral rules should not be made now that the campaign is underway, no matter how desirable these changes may be.

Sugar Minister gets it wrong

Sugar Minister Tomasi Tunabuna has got it all wrong, says the National Farmers Union.

The Union is replying to the Minister’s statement as reported by FBC News (16 June) that “government is effectively buying cane at an inflated price of over $1100 per tonne only to sell the processed sugar at a loss for less than $774pt”.

It is an absurd statement and exposes the Minister’s ignorance of the actual price of cane paid to the farmer.

“We also take exception to the Minister’s insulting remark that … “People are just surviving on somebody else’s sweat”. This obviously is a reference to the cane farmer,” said NFU general secretary Mahendra Chaudhry.

“If fingers are to be pointed as to who is responsible for the current state of the industry, then these should be aimed at FSC and successive governments, not the farmers,” he said.

For two decades, the sugar industry has been in steady decline. Successive governments have poured money into FSC while failing to address its chronic operational failures. The mills continue to perform poorly, yet the executives responsible for this are rewarded with bonus payments.

[The Minister now lectures farmers about logic and business survival, but refuses to apply the same standard to FSC.
If the miller is consistently losing money, wasting raw material, and failing to improve efficiency, then serious questions must be asked about why taxpayers continue to subsidise its poor performance.

Cane farmers have carried this industry through difficult times, including during the COVID-19 pandemic when tourism collapsed. They have done so with little support and declining returns.

They do not deserve to be insulted by a Minister who appears more interested in defending a failing miller than in fixing the real problems within the industry.

Cane farmers are not asking for favours. They are demanding fairness, accountability from the miller, and a government that respects their contribution to this country rather than insulting them.

The Minister could start by having the courtesy to acknowledge the two letters we wrote to him on 18 December 2025 and 4th May 2026 on problems facing the industry and respond to the issues raised therein.

Fiji Labour Party statement on fuel prices

The Fiji Labour Party condemns the Fijian Competition and Consumer Commission (FCCC) for its blatant double standard in the way it applies fuel pricing rules.

When global fuel prices were rising sharply earlier this year, the FCCC conveniently changed its standard practice of using the one month lag to set the domestic fuel price. Instead, it extended the pricing window by 20 days to phase in the sharp increases.

Now that global oil prices have fallen following the reported agreement between the United States and Iran, the same Commission has reverted to a rigid position. It is insisting that Fiji’s fuel pricing system operates with a two-month lag and that consumers should not expect any immediate relief.

This selective approach raises a serious question: who is the FCCC actually protecting? They should be protecting the consumer. However, they are chopping and changing the rules to soften the blow for fuel companies and to avoid a political backlash, entirely against the best interests of the consumer.

This pattern has become predictable. Prices go up quickly when it suits the suppliers, but they come down slowly, if at all, when global costs ease.

Fijians have seen this happen repeatedly. Bus fares, electricity tariffs, and the price of goods increase almost immediately when fuel costs rise. Yet when those costs fall, there is no automatic or meaningful downward adjustment.

The system appears designed to protect fuel companies and their margins while ordinary households continue to carry the burden long after the original price shock.

The Fiji Labour Party demands that the FCCC explain why it was willing to bend its rules when prices were rising but refuses to apply the same methodology now that they are falling. The current fuel pricing mechanism lacks transparency and fairness and must be reviewed urgently.

Mahendra Chaudhry
Leader, Fiji Labour Party