Despite pumping in $150 million to upgrade the sugar mills around the country, the sugar mills are expected to operate at only 50 percent capacity this crushing season due to low cane production.

The Fiji Sugar Corporation CEO Deo Saran has revealed that after the upgrades, the mills have the capacity to crush over 4 million tonnes of cane annually, however, the current level of cane production is round 2 million tonnes, which is just 50 percent of the mill output requirement.

Saran said while the 2010 planting program is an increase of around 75 percent over the previous years, it is still not sufficient to meet FSC's mill output requirement.

He said the FSC is now working with the government and other stakeholders to undertake major cane rehabilitation program over the next two years to ensure that the mills can operate at 100 percent capacity with enough cane being supplied to the mills.

Meanwhile, after incurring $30 million in financial losses last year, the FSC has now embarked on major cost cutting measures which has resulted in 500 workers being laid off with another 300 workers expected to be sent home during the off season.

The FSC intends to reduce its workforce by up to 40 percent over the next 18 months while eliminating all overtime payments.

Story by: Roneel Lal.
Source: FSC Statement.