The Fiji Cane Growers Association says it is pursuing legal action about a decision to use millions of dollars of farmers earnings to help bail out a financially troubled fertiliser company.
Last year, sugar industry stakeholders including the Fiji Sugar Corporation, and the Sugar Cane Growers Fund and Council agreed to deduct 3.6 million US dollars from the sugar price to be paid to the Growers Fund.
The money was given to the South Pacific Fertiliser Company which was in financial crisis.
The Cane Growers Association chief executive, Bala Dass, says the decision was approved by the Sugar Minister Mahendra Chaudry, without the knowledge of farmers.
He says he has referred the issue to lawyers to pursue through the courts.
"The money was given to the fertiliser company upon the directive of the Minister at that time. Why that money farmers should pay, and if farmers have to pay that money, when that loan was taken, why farmers were not advised that this money was taken and farmers will have to pay about $4.59 million. I'm very much disappointed."
Bala Dass says the loss in income for farmers will be more than 1 US dollar per tonne.
