Heyday of Fiji sugar
Rasheed Akhtar Ali
IN April 1973, Fiji a fledgling nation granted independence barely two years ago, decided to take over the running of its economically vital sugar industry from the Australian-owned Colonial Sugar Refining Company (CSR).
It was a bold move considering that the well-being of Fiji's economy depended almost entirely on sugar as the major revenue earner, and the fact that CSR with its Colonial attitude and paternalistic system of operation, had exercised total control over the entire industry run by expatriates.
The CSR had threatened to move out of Fiji lock, stock and barrel after the 1972 crushing season, as it claimed it would be unprofitable to continue operations in Fiji after the Denning Award came up with a proceeds sharing formula on the basis of 65 per cent to growers and 35 per cent for the miller with a guaranteed price of $75 per tonne for cane.
Fiji's first Prime Minister Ratu Sir Kamisese Mara decided to take the bull by the horns and accepted CSR's decision.
An Act of Parliament in 1972 created the Fiji Sugar Corporation (FSC) to take over the operations of the miller and to run the industry.
On April 1st, 1973, FSC formally took over command of the sugar industry in Fiji. It faced two major setbacks. One was a marked decline in cane and sugar production by the late ‘60s to a point where Fiji was unable to meet its international commitments.
Secondly, the industry lacked experienced locals in managerial positions who could run the industry, as under the CSR top and middle management were all expatriates.
Undaunted, and in line with Ratu Mara's policy of localisation, FSC immediately set out to create an executive management group from handpicked locals to get onthe-job training.
Chief among these was a young lad from Ba, Rasheed, who began work at the Labasa mill in 1964 as an accounting officer.
In 1973, Rasheed who by then had gathered hands-on experience at all four mills, was brought to headquarters as FSC's chief accountant.
Seven years later, in May 1980 he was appointed FSC's first local managing director — especially groomed to take over as successor to George Moody-Stuart. FSC flourished under Rasheed's competent stewardship. Indeed, his 10 years in office is regarded as the heyday of Fiji's sugar industry.
The industry expanded vastly under his tenure benefitting from a number of significant developments that laid a strong, stable, democratic foundation for growth against a backdrop of political stability that prevailed in the early years following independence.
Equally important, was the encouragement and support he and the industry received from Ratu Mara with whom Rasheed had a close working relationship — accompanying him on international meetings, even to a breakfast session at the White House.
Two of the most important of these developments was the signing of the Sugar Protocol of the Lome Convention in 1975 which gave Fiji a guaranteed price for its sugar way above the world market price and the enactment of ALTA the following year which provided 30 year security of tenure to cane farmers.
Both facilitated the expansion of the sugar industry in the late ‘70s and ‘80s.
Thirdly, under Mara's patronage, major reforms were introduced through the 1984 Sugar Industry Act which laid the democratic foundations of the industry through institutions such as the Sugar Commission of Fiji and an elected Sugar Cane Growers Council which gave growers a recognised voice in the industry.
To meet its commitments on the international market, Fiji had to raise production by 200,000 tonnes and increase areas under cultivation.
The Seaqaqa scheme was conceived and successfully completed during Rasheed's tenure and at its peak delivered upwards of 400,000 tonnes of cane annually to the Labasa Mill.
He steered the corporation through record levels of sugar production and profitability in the 80s with cane production consistently more than four million tonnes and sugar production close to 400,000 tonnes; and Rasheed holds the distinction of reaching a record sugar production of 501,000 tonnes in 1986.
He invested in capital works to undertake the modernisation and expansion of the mills to increase capacity and efficiency.
He also headed FSC's diversification into the distillery business and the sale of excess power to the FEA national grid.
As general secretary of the National Farmers Union, I constantly found myself at the opposite end of the bargaining table to him but the negotiations were always conducted without rancour and with respect for each other’s rights.
Our major confrontation took place over the now legendary harvest boycott staged by the cane farmers led by the NFU in 1990 for the Kermode Master Award to be rescinded.
The boycott was so successful that in June FSC and Ratu Mara’s interim administration agreed to a virtual return to the Denning Contract on all major issues under contention.
Rasheed resigned shortly after, 10 years after taking office, and migrated to Australia
And was immediately snapped up by Booker Tate Ltd to head their Asia/Pacific regional office based in Brisbane with responsibility for their offices in Sri Lanka, PNG, China, Vietnam and Indonesia and served as director on board of various sugar companies in China, Sri Lanka and PNG.
Rasheed served as consultant and later as board member to the Ramu Sugar Ltd in PNG. He also played a role in the streamlining and restructuring of sugar industries in the West Indies.
He returned to the sugar scene in Fiji in 2004 when I appointed him to the FSC board as a nominee of the Leader of the Opposition.
Later, in 2009, he was appointed along with two other former executives of FSC, by the Bainimarama administration to head a team to review the financial and operational viability of the corporation and the Sugar Industry.
Rasheed also holds the distinction of being the first non-practicing accountant to be appointed President of the Fiji Institute of Accountants.
He served on various boards and statutory organisations including the Reserve Bank of Fiji, Fiji National Provident Fund, Civil Aviation Authority of Fiji, Fiji Sugar Marketing Co Ltd, Sugar Commission of Fiji and Chairman of South Pacific Distilleries Ltd.
Rasheed was a long-servicing board member and chairman of the Society for the Blind in Fiji and long-serving board member of Guide Dogs for the Blind Association of Queensland.
He is a recipient of the prestigious British CBE (Commander of the British Empire) award in recognition of his exceptional work and service to the sugar industry in Fiji and received the honours from the Her Majesty the Queen at Buckingham Palace on June 15, 1985.
Rasheed passed away in Brisbane on December 30 2020 at the age of 80, still actively involved in community service until the end. He is survived by his wife Sabra, son Arif, daughter Farisha and two grandchildren Sara and Amir.