The Fiji Sugar Corporation has incurred a net loss of 36.7 million dollars for the year ended 31st May 2009.

In the 2009 Annual Report, FSC Chief Executive, Deo Saran say after taking into account unrealized exchange loss of 24.4 million dollars in relation to the Exim Bank of India loan due to the devaluation of the Fiji dollar, flood damages of $6.1 million, losses associated with the divestment from South Pacific Fertilizers Limited of $2.4 million and impairment to fixed assets arising from mill upgrade program of 1.3 million dollars, the operating loss before income tax increased to 40.1 million dollars.  

Saran said FSC has a long term loan of 50.4 million US dollars established as line of credit with the Exim Bank of India.

It is through this line of credit the Corporation has been purchasing all of its plant and machinery in relation to the Mill Upgrade Program.

It has also been stated in the report that as at 31st May, 2009, the current liabilities exceed the current assets of the corporation by 54.3 million dollars and the FSC group has generated negative cash flows from operations for the year ended 31st May, 2009.

Furthermore the Corporation will be required to meet the repayment commitments for its loan from Exim Bank of India commencing from August this year based on a three year moratorium for repayment of loan.

The report states that these factors will create financial constraints on the Corporation and the group, although the board is confident that adequate profits and cash flows will be generated in the future.

The 2009 FSC Annual Report also reveals that government guarantees are securing FSC's bank overdraft at the Westpac Bank, the advance from the Sugar Cane Growers Fund, the advance from the Reserve Bank of Fiji and the advance from the Fiji National Provident Fund.

As at 31st May this year, the FSC advance from the Sugar Cane Growers Fund stood at 5.75 million dollars while its advance from FNPF stood at 19.6 million, and the FSC's advance from the Reserve Bank stood at 20 million.

The 19.6 million dollars advance from FNPF is a loan secured by a government guarantee. The loan was rescheduled during the year and is repayable by May 2010.

FSC's 20 million dollars advance from the Reserve Bank of Fiji is subject to interest at the rate of 3 percent per annum and is secured by a government guarantee. The loan repayment was rescheduled during the year and is repayable by 14th November this year.

Meanwhile it has been revealed that sugar production for the 2008 season was 207 thousand 966 tonnes. This was about 29 thousand 500 tonnes below the 2007 production.