Rabuka denounces attack on farmers

DO not blame farmers for high food prices, says Opposition Leader Sitiveni Rabuka.

He made the comment in response to Dr Reddy’s statement in The Fiji Times on January 10 that high food prices were the result of farmers increasing costs.

“Instead of blaming farmers, Government should take responsibility for high food prices, because it had implemented the wrong policy mix over the last 13 years including its mix of monetary and fiscal policy, its agricultural policy, and its policy of excessive and untargeted expenditure of freebies and handouts,” said Mr Rabuka in a statement.

He said managing inflation was the role of Government and the Reserve Bank of Fiji.

“It is not the farmers’ role, so Dr Reddy is wrong to blame the farmers.

“Dr Reddy, as an economist, should know that Fiji imports 40 per cent of its food, and the highest import cost is for fuel which is 30 per cent of our import bill.”

Mr Rabuka said when fuel prices increased, so did transportation and production costs, resulting in food price increases.

“When food supply increases, the prices will decrease – that is basic economics.

“Rather than supporting farmers to grow more, public funds had been wrongly spent on unsustainable handouts or freebies that have failed to lift the poor out of poverty and have fostered a ‘handout mentality’.

“Agriculture is the backbone of our economy and the lack of vision of the FFP Government has seen the contribution of agriculture to GDP decrease from 16 per cent in 2005 to 6 per cent in 2016 – in only 10 years,” he said.