20/06/2026
MINISTRY SUBSIDIZES SUGARCANE HARVESTING AND CARTAGE COSTS OF LORRIES, MECHANICAL HARVESTERS, LOCOMOTIVES AND TRACTORS USED ONLY FOR CANE CARTAGE
Further to the announcement made on the 10th June 2026, the Ministry of Agriculture, Waterways and Sugar Industry (‘Ministry’) is advising stakeholders that a total of $5.0 million has been allocated from its 2025/2026 budget to support sugarcane farmers in meeting the rising fuel cost for cartage and mechanical harvesting. The funding has been re-allocated from its existing programs from the Sugar Industry and Agriculture sector.
According to industry records, approximately 4,600,000 litres of diesel fuel was utilized by lorries, locomotives, mechanical harvesters, and tractors for harvesting and carting cane in the 2025 season. This excludes about 1,200,000 litres used by the Fiji Sugar Corporation (FSC) diesel generators at the sugar factories during cane crushing. From the 4,600,000 liters, about 2,300,000 litres was consumed in the first three months, from June to August.
The Minister for Agriculture, Waterways and Sugar Industry, Hon. Tomasi Tunabuna confirms that the $5.0 million will be used to subsidize diesel fuel at $2.00 per litre and will only fund the lorries, mechanical harvesters, locomotives and tractors that will be used in the cane harvesting and cartage activities.
The specific conditions for the Fuel Subsidy is:
1. The Fuel Subsidy will cover the period from 20th June 2026 to 31st August 2026, as temporary relief.
2. All lorries, tractors used for cane cartage, mechanical harvesters and locomotives (hereby referred to as the ‘beneficiaries’) must be registered with the Fiji Sugar Corporation and must comply with the Land Transport Authority requirements.
3. The funding of $2.00 per litre diesel fuel subsidy will go directly to the sugarcane farmers. However, the mechanism to distribute the subsidy will be decided collectively by the three parties; Fiji Sugar Corporation, Sugar Industry Tribunal and the Sugar Cane Growers Council. The parties will ensure that there is no double dipping by the beneficiaries.
4. The monitoring and verification of fuel subsidy utilization will be strictly monitored by Sugar Cane Growers Council and Fiji Sugar Corporation to ensure there is no misuse of the fuel subsidy.
5. The subsidy is on first-come-first-serve basis and will take into account the volume of cane harvested and delivered to the mills.
6. The program will end on 31st August 2026, or until the subsidy has been fully utilized, whichever comes first.
7. The subsidy will be managed by Fiji Sugar Corporation and will be released through the existing payment system upon thorough verification.
8. Farmers are required to consult with the Fiji Sugar Corporation, Sugar Cane Growers Council and Sugar Industry Tribunal for further clarifications on the implementation and disbursement of the fuel subsidy.
Meanwhile, Hon. Tunabuna is urgently requesting all the sugarcane farmers, lorry operators, mechanical harvesters and tractor operators and the sugar factory to commence with the sugarcane harvesting and cane crushing.
The Ministry is committed to the sugarcane sector and will ensure that sustainability of the industry is maintained in the long-term.