[File Photo]

The Sugar Ministry will pay the first instalment of $15 million from the 2024-25 budget to the EXIM Bank of India for the $102 million loan undertaken in 2004.

Sugar Minister Charan Jeath Singh says the ministry is on track on its loan repayment to stabilize the sugar sector.

He informed that previously the Indian government was charging interest on the loan but the ministry has successfully negotiated to get rid of the interest portion, hence now they are left to pay off the principal amount.

The loan was originally acquired in 2004 for the purpose of enhancing the sugar mill infrastructure.

Regrettably, Singh explains that the firm responsible for executing the project failed in its mission, thereby burdening the Fiji Sugar Corporation with substantial debt.

“Unfortunately the money wasn’t well spent. Most of the machines and parts being imported are still unused and basically it cannot be used because it’s now outdated as well.”

Singh adds the coalition government is committed to repaying the loan so that they can focus on other priorities.

He is hopeful that negotiations with the Indian government will be successful with the high-level delegation next week to hopefully write off the loan.