ADDRESS AT THE LAUNCH OF FIJI DEVELOPMENT BANK’S NEW FINANCIAL SOLUTION FOR RICE FARMERS: RICE MOBILITY PACKAGE
November 24, 2021 Fiji Development Bank, 360 Victoria Parade
The Board Chairman, Fiji Rice, Mr. Raj Sharma;
The Acting Permanent Secretary for Agriculture, Mr. Vinesh Kumar;
The Chief Executive Officer, Fiji Development Bank, Mr. Saud Minam;
Representatives and Staff from Stakeholder Organisations;
Members of the Media;
Fellow Fijians viewing via Livestream;
Ladies and gentlemen.
Bula Vinaka and a very good morning to you all.
I am extremely pleased and honoured to be present here with you all this morning as we launch this important package for farmers – FDB’s New Financial Solution for rice farmers: Rice Mobility Package. I have been associated with the promotion of a sustainable rice industry in Fiji through my previous engagements with the Fiji Rice Ltd Board. I am indeed humbled and overjoyed to be officiating in today’s event where innovative solutions for rice farmers are being rolled out.
Ladies and gentlemen, the rice industry feeds tens of millions of people around the world as rice is one of the major plant food staple of daily diet. Here at home, rice is a part of many daily meals and Fiji’s rice import bill stands at around $40 million for 40,000 tonnes annually .
According to the Ministry of Agriculture, we produce only 16% of our rice, with more than 80% of rice still being imported . Given today’s launch and the many possibilities it offers to our rice farmers and in turn our local rice industry, we can divert that same money used on importing rice to health care or education.
Development, particularly sustainable development, is about creating conditions for our people where their dignity and pride in self-sustainability can be realised. Today, I acknowledge the efforts of the Fiji Development Bank (FDB), and Fiji Rice Limited, for creating such conditions for our people in addressing a moral and economic imperative on food security.
Ladies and gentlemen, today the Fiji Development Bank and Fiji Rice Limited are creating a platform with conducive conditions by removing stubborn barriers that have been long associated with difficult access to finance, infrastructure, land, markets, machinery, and capacity building among many others. Now it is up to our people to take advantage of the opportunities presented to them.
Now before I launch this great initiative by announcing the details of the new financial solution tailored by the Fiji Development Bank and Fiji Rice Limited to meet the needs of our rice farmers, I would like to share my thoughts on why people should not look at agriculture as a last option type profession or merely a means to an end but should be seen as a sustainable solution for food security and self-sufficiency for our people and our economy.
While we are fortunate in Fiji that we do not face a food crisis, we must never forget how tropical cyclones: like Tropical Cyclone Winston in 2016; and Tropical Cyclone Yasa and Ana that just recently destroyed homes, livestock and crops; and interrupted our lives. The Fiji Rice projects had in fact sustained a loss around $350,000 in the Northern Division after Tropical Cyclone Yasa and Ana. It had to quickly roll out a recovery plan for farmers and collaborated with the Ministry of Agriculture to facilitate access to private tractors for farmers to prepare the land for replanting . I personally feel that it is good for farmers to be connected to a network or the value chain as this allows access for different key players to then step in to assist each other in times when the need arises.
Ladies and gentlemen, the agriculture value chain concept is a game changer for farmers, the transporters, the small business owners supplying packaging materials or the workers in the processing companies or marketing end- it is all connected and in ensuring secured access to markets, information, knowledge and financing – it is all necessary for a self-sustaining industry.
I have been reliably informed that this new financial solution addresses majority of the challenges raised by rice farmers and shall drive the industry forward towards self-sufficiency.
Ladies and gentlemen, I have much pleasure in announcing that Fiji Development Banks’s RICE MOBILITY PACKAGE is designed to mobilise our rice farmers’ ability to progress from subsistence farming to commercial by providing access to financing and a secured market.
Farmers, joint ventures, cooperatives and those in partnership or companies who wish to venture into rice production or are already active in the industry can access financial assistance for agriculture land purchase, land development, buying of farm machinery for use or for hiring out machinery to farmers, buying of seedlings, or meeting labour costs or for meeting other working capital needs.
Since this package focusses on an agriculture value chain financing, farmers can access a secured market, the Fiji Rice Limited, who will also divert the loan repayments to Fiji Development Bank directly, reducing burden related to logistics on farmers.
Farmers with no lease or land title, can also access financing after the provision of written consent from the Turaga ni Mataqali and members, amongst some other minimum confirmations. On this note, I would like to Congratulate the Fiji Development Bank, Well done.
The MOU that will be signed between the Fiji Development Bank and Fiji Rice Limited today shall further ensure technical assistance to farmers to help improve their productivity, allow for sharing of useful information that shall assist the farmers with a hassle-free loan application experience in obtaining financial assistance from the Bank.
The Fiji Rice Limited shall provide the Fiji Development Bank with the necessary support documentation such as farmers’ annual yield, secured market access contracts, growth areas for rice production, and other information such as cost-effective methods of farming. This shall surely reduce the burden of compiling documentation on farmers.
The Fiji Development Bank shall provide these farmers with access to an online application portal where the end- to-end, paperless, digital process shall further reduce any logistical burdens or excessive expenses on farmers that come with numerous visits to the bank, saving them time and resources.
The Bank shall then provide monitoring and supervision of loan accounts for customers adding value to farmers’ knowledge of financial literacy.
Ladies and gentlemen, before I conclude, allow me to congratulate the Fiji Development Bank – Chief Executive Officer, Mr Minam and his team as well as Fiji Rice Chairperson, Mr Sharma and his team for this collaboration which removes major barriers for our rice farmers in accessing financial services from a formal institution and for the provision of a guaranteed market for our farmers.
Livelihoods and experiences shall indeed be transformed with our rice farming communities being empowered .I do hope that more and more people will take advantage of this magnificent solution that shall no doubt help our country reduce our import bills and become self-sufficient.
In conclusion, it gives me great pleasure in officially launching the Fiji Development Bank’s RICE MOBILITY PACKAGE that is to be digitally accessible from 01st December, 2021.
May Almighty God Bless you all. May God Bless Fiji!
Vinaka vakalevu and Thank you.