Concerns raised over non performing entities
Deputy Secretary for Public Enterprises Iliesa Lutu said one company is Rewa Rice Limited.
Lutu said the company is having production issues in terms of rice supply and farmers are not able maintain supply to the Dreketi mill.
He said the mill has $3,000 capacity per tonne in a year, however, the production is below 1,000 tonnes and stressed that Rewa Rice has to improve milling capacity and they need to have productive levels to get revenue.
Lutu said it is a challenge and they are looking at restructuring the industry and seek commercial farmers to cater for more variety of rice and also restructure the company's balance sheet.
The Deputy Secretary said another entity not performing to expectations is Fiji Hardwood Corporation, which has the capacity to log and do primary processing of logs.
However, Lutu said there is not sufficient market for their produce as their products are not highly marketable overseas since it is a new product and it will take a while to pick up.
Lutu said they are providing capital injection to Fiji Hardwood Corporation and that the reforms are all in line with the People's Charter.
Story by: Roneel Lal
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