Sugar cane industry continues to be a significant contributor to the economy - PM

Prime Minister Voreqe Bainimarama said the Fiji sugar cane industry continues to be a significant contributor to the economy.

While speaking at the International Sugar Council in London, Bainimarama said the industry contributes 8% towards Fiji's total export proceeds and provides livelihoods for about 200,000 Fijians or 25 per cent of the population.

Bainimarama said the fact that he continues to be the Minister for Sugar in the new Government as well as Prime Minister demonstrates the importance that he attaches to the welfare of the industry.

He said where others saw no viable future for sugar in Fiji, his Government was determined to not only keep the industry alive but to place it on a new and more secure footing.

Bainimarama said Fiji's 2014 national crushing season has just ended with the last of the four sugar mills, Rarawai, winding up its crush on 17th November.

He said against an initial estimate of two million metric tonnes of cane, the Fiji Sugar Corporation crushed 1.83 million metric tonnes of cane and produced 226,000 metric tonnes of raw sugar.

The prime minister says notwithstanding this, many challenges remain like the abolition of EU sugar production quotas post 30 September, 2017 and the consequent adverse implications on sugar prices poses a very big challenge indeed.

He said moreover, EU sugar prices have already come under pressure, with significant falls compared to prevailing prices over a year ago so suppliers like Fiji are having to prepare for a reduction in their export revenues even before 2017 a sobering prospect for any developing nation.