Good Morning, Bula Vinaka and Namaste,
First and foremost, I thank the Almighty for his mercy and guidance.
It is my honour and privilege to welcome
- Chief Guest- Turaga Tui Macuata – His Excellency Ratu Wiliame Katonivere
- Guest of Honour -Minister for Multi-Ethnic Affairs and Sugar Industry- Hon Charan Jeath Singh
- Acting Permanent Secretary for Multi-Ethnic Affairs and Sugar Industry- Ms Reshmi Kumari
- Commissioner Northern – Mr Uraia Rainima
- Mr David Ariff Chan – CEO Capital Insurance Holding Ltd
- Fallow Board Members, Management & Staff
I am indeed honoured to be present in front of you all. It is your day, Farmers Open Day where you get to know more about Government, Non-Government and Private Sector services and Products. This becomes a knowledge-sharing space for you all. This is the third year and the first time in Labasa.
Why Labasa?
Labasa and Northern Growers play a vital role when it comes to sugar cane. From our $35m Loan Portfolio, $11.7m (33%) is from North. At macro level we hold 65% of the sugar cane loan market share and we have plan to increase to 75% provided the industry grows to have over 2 million tonnes of sugar cane in short to medium term by 2028. This can only be achieved through commitment and political will of the authorities, genuine and honest collaboration among all the stakeholders of the industry, including the farmers, labourers and landowners.
Agriculture, inclusive of sugar, has huge potential, and the Government continues to assist in most of the sugar and non-sugar sectors.
The Agriculture Survey Reports 2020 states that 83,395 total farmers and this may not include all sugar cane farmers.
If I mirror it down to 10,260 sugar cane farmers, 7000 of Fiji Crop and Live Stock Members, 600 of the rice farmers, 500 copra and 2000 Cash crop farmers, we get total of 20,360.
Looking at the population, more work to be done for the farmers within and outside of the sugar industry with respect and dignity to serve them. I call on, all the industry players and corporates to assist the farmers and agriculture sector. My sincere plea to corporates of the country, stop giving lip service to the farmers and be genuine in your corporate social responsibility.
I invite you to partner in the loyalty program and demonstrate your commitment to the farmers. Farmers are the lifeblood of the country and its economy.
Fiji Crop and Live Stock Council has already joined the scheme and rice farmers around the corner. You have already 18000 customers.
In addition, the Government should look at policies and tax incentives for the corporates that would assist the agriculture sector and special price guarantee schemes for other crops as it has for sugar cane, rice, and copra. I must also urge the Government to look at long-term solutions for leases for mutual benefits of the all the parties.
At this juncture, I acknowledge all our current 21 Loyalty business partners and some of them have booths here today who have come forward to join SCGF Loyalty Program. We do not make any money at all in this scheme but try to assist the sugar cane farmers to get discounts.
As of yesterday, we have 1764 farmers who have obtained the card, and a number of them are getting discounts on purchases – tractors, implements, medical services, pharmaceuticals, supermarkets, mobile operators, white goods, and private hospitals. We are talking to fuel companies and airlines too.
In addition, we have many things in our basket for our farmers – our plans for the Special Overdraft Facility, Savings or Retirement Funds, Online Documentation Management System, and Sugar Cane Farmers Awards with other insurance products.
From January we have reduced interest rates from 6% to 4.5% which has impact of $0.500m This has come about after diversification of our Balance Sheet through the acquisition of Commercial Property in Lautoka and returns from such investment is passed to the growers. We are expected to make more investments in this area of real estate purely to mitigate the risk and pass the benefits to the growers. This year, Management has also started work on the review of the SCGF Act 1984 that would allow more flexibility and improve the governance.
Another important part of the Program is the launch of SCGF Mortgage Protection Insurance scheme. This would enable farmers below 70 years to have loans covered and in case of untimely death or permanent disability, the loan will be fully paid provided the accounts are not in extreme defaults. I must thank Capital Insurance Fiji Ltd and CEO Mr Chan for the competitive package. It has been a difficult negotiation and must acknowledge your willingness to assist our farmers. After all the procedural logistics, we expect the covers to be rolled out by August this year with adequate awareness and education programs for the growers, which will be ongoing.
For the next two and half years the premium will be paid by SCGF with an annual tune of approximately $0.500m.
Furthermore, we have been at the forefront of the Government New Farmer and Lease Renewal program where today Hon Minister will hand over the Grant Letters and Agreements. Management has made a submission of $ 1 million budget request for the 2025- 2026 Year. We thank the Government for this initiative.
Finally, I take this opportunity thank His Excellency, Hon Minister, Commissioner Northern, all the stakeholders, FBC for free live streaming and reports, our SCGF CEO Management & Team Labasa.
Vinaka
Thank you
Ahemad Bhamji
Chairman Sugar Cane Growers Fund
