It was launched in Labasa in July 1978 under the auspices of the Fiji Trades Union Congress, with Mahendra Pal Chaudhry as its first General Secretary.
Although the union was initially only based in Vanua Levu, it had an immediate impact on Fiji's sugar industry, as it exposed the corruption in allocating newly released cane farming land to Minister's wives.
In 1981, the NFU had its first major dispute with the Fiji Sugar Corporation (FSC) when it sought compensation for losses incurred by farmers due to the abnormal closure of the Labasa Mill.
In the early 1980s, the NFU joined other farmers' unions under an umbrella organisation known as, the Joint Committee of Cane Growers Associations, to take part in the restructure if the sugar industry in Fiji.
Following this win by the NFU, the regime continued to intimidate its leaders but was unsuccessful, mainly due to support from overseas unions and sugar consuming countries.
National Farmers Union polled 52 per cent of all votes cast compared to the Fiji Cane Growers Association's 42 percent.