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Company defends strategy as MPs probe millions spent on mechanisation and farming support.

Fiji Rice Limited came under scrutiny today as questions were raised over declining production figures despite millions of dollars invested in machinery and farming support.

The issue was raised by Opposition MP Premila Kumar during a Standing Committee on Economic Affairs hearing in Parliament.

Ms Kumar questioned the return on government investment in mechanisation and farming grants, pointing to data showing a steady decline in national paddy production.

“We are giving all these machines, what are we getting out of it? Because if you look at the data, despite all these investments that we are making, the production is going down,” she told the committee.

Ms Kumar said national paddy production had fallen from about 13,000 metric tonnes in 2022 to roughly 6,000 metric tonnes, before partially recovering to around 8,000 metric tonnes in 2024.

She also raised concerns about consumer behaviour, warning that even if production increased, locally grown rice could remain unsold due to strong consumer preference for imported white rice.

Responding to the concerns, Fiji Rice Limited board chairman Raj Sharma said the company was no longer insolvent following a government debt write‑off.

He said Fiji Rice was now debt‑free, with assets exceeding $7 million, and was investing $2 million of its own funds this year into milling and storage upgrades.

Mr Sharma said the company needed to mill between 3,800 and 4,000 tonnes of paddy annually to become fully self‑sustaining.

“We need $1.4 million in planting grants, and I tell you, the results will come,” he said.

Mr Sharma added that with proper funding and improved production, local rice could supply up to 20 per cent more of the domestic market.

Meanwhile, chief executive Mukesh Kumar acknowledged shortcomings in the company’s annual report, particularly the lack of measurable performance targets.

He committed to improving data‑driven reporting and clearer benchmarks going forward.

Fiji currently imports between $60 million and $80 million worth of rice each year.

Source : fijisun