Post pandemic, the price of fertiliser has almost doubled, says Prime Minister and Minister for Sugar Industry Voreqe Bainimarama.
Deliberating on the ministry’s plans to revitalise the sugar industry in Parliament on Tuesday, Mr Bainimarama said Russia’s invasion of Ukraine has since exacerbated the situation with international sanctions on Belarus which is the supplier of gMOP fertiliser and Muriate of potash.
He said the fertiliser export restriction imposed by China, the largest exporter of DAP fertiliser, had also resulted in substantially increased prices.
“The South Pacific Fertilizers Ltd is procuring fertiliser materials from alternative markets at a cost that has increased two to threefold and there is COVID-19,” Mr Bainimarama said.
“All the challenges that we have, comes in combination with the economic shock caused by COVID-19.
“There were lockdowns, port closures and inconsistence shipping schedules that affected the sugar and molasses sales, all of which affected the Sugar Corporation’s cash flow.”
Mr Bainimarama said the global lockdowns delayed the arrival of parts of equipment which compromised timely mill maintenance. “I should mention that despite the COVID-19 challenges and failed boycott instigated by the National Farmers Union last year, the mill operated well with fewer breakdowns and stoppages.
“We shielded growers from global price hikes by absorbing the entire increase in fertiliser cost with an additional grant allocation of $9.72 million.
“In the revised 2021-2022 budget on top of the initial allocation of $15.6 million, the total allocation is $25.3 million.”
Mr Bainimarama said from April 1 this year the price of fertiliser increased to in exccess of $80 per bag.
“Yet my Government has continued to subsidise the entire difference of that increase so that growers still pay the same price of $20 per bag and we made an additional allocation in the most recent revised budget to cater for that increase.
“Government has guaranteed sugar price of $85 per tonne irrespective of the world market price.
“This has given security and certainty to farmers by supporting their bottom line.”
