Based on a submission by the Sugar Minister Commodore Frank Bainimarama, the Government will now meet part of $26.09 per bag increase in the price of fertilizer which increased from $19.50 to $45.59.

In a statement, Bainimarama said $12 per bag of the increase will be met by the growers, the balance of $14.09 will be met by the Government.

Commodore Frank Bainimarama said South Pacific Fertilizer Limited in its current financial standing and expected cost of fertilizer in future will not be able to continue its trade and it may become insolvent if it does continue trading.

Meanwhile, Sugar Commission Board Chairman John May said this is timely initiative and this will ensure that the company keeps supplying fertilizer to the growers.