Fiji Sun

Sugar industry in Limbo: World Bank

- JOSEFA BABITU SUVA Feedback: josefa.babitu@fijisun.com.fj

The Government’s support towards the sugar industry has not improved the competitiv­eness or profitabil­ity of the sector, The World Bank said.

The secular decline of the sugar sector since the 1990s has continued in terms of its share of agricultur­e gross domestic product (GDP) and of merchandis­e exports, the bank said.

It found that there were more than 20,000 active cane growers in the 1990s, but less than 12,000 after 2016.

The World Bank’s Fiji Public Review 2023 report said the internatio­nal competitiv­eness of the industry declined rapidly in the past 30 years.

Labour and other resources have continued to move out of the sugar sector, said The World Bank.

It found that there were more than 20,000 active cane growers in the 1990s, but less than 12,000 after 2016.

Declined demand and rising internatio­nal competitio­n compounded the challenges that need to be urgently addressed by Fiji’s sugar sector, the bank said.

The World Bank has since indicated that the current trajectory of the sugar sector was unsustaina­ble.

It said there was an urgent need to develop and implement a reform programme to fix the deep structural problems in the sugar economy.

The World Bank Recommende­d: -remove subsidies on fertiliser and weedicides, for cane growers, -replace the numerous forms of assistance to cane growers with more-generic assistance to rural households and regions,

-increase expenditur­e on rural transport infrastruc­ture to reduce transport/logistics costs with benefits to be shared between all farmers,

-remove the Fiji Sugar Corporatio­n (FSC) monopoly to incentivis­e it to boost productivi­ty.

 ?? Sugar cane crushing in Labasa. Photo: Shratika Naidu ??
Sugar cane crushing in Labasa. Photo: Shratika Naidu

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