It is good news to mahogany landowning unit.
Government has come out with the latest reforms in the mahogany industry that will see an increase in stumpage and premium rates.
Rates for landowners engaged in mahogany leases with Fiji Hardwood Cooperation Limited have been reviewed for the first time since 2010.
Rental and stumpage rates will increase by 19 per cent and premium rates will increase by 20 per cent.
These rates will be back dated to 1 January 2016.
This has come out of latest reforms in the mahogany industry.
Prime Minister Voreqe Bainimarama in a statement says these reforms will dramatically boost efficiency throughout the industry and protect the industry in the long-term.
Mahogany Industry Council’s mahogany license issuance framework has also been restructured to reflect industry developments since the establishment of the licensing system in 2011.
The new licensing system is based on annual log production capacity of 75 thousand cubic meters.
It will also standardize log prices, limit licenses to two per log grade and revise purchase protocols.
To facilitate the sale of surplus Grade 1 and 2 mahogany logs currently stored in concentration yards, temporary licenses will be issued to FHCL to call for expressions of interests from interested buyers.
A Central Concentration Log yard will be established at the Waivunu facility in Serua to improve the coordination of log sales and delivery.
FHCL’s recently established nursery project in Nukurua, Tailevu will also reactivate its replanting programme, with a target of replanting 1,250 hectares by the end of the year.
The restructure is expected to begin on 1 January 2017.
The Council will meet on a quarterly basis to monitor the progress of these initiatives.