Ministry of Sugar is not the responsible authority to regulate prices of sugar – PM
NFP President questions PM why is he exacerbating people’s pain by allowing price hike for sugar

Ministry of Sugar is not the responsible authority to regulate prices of sugar – PM

NFP President questions PM why is he exacerbating people’s pain by allowing price hike for sugar

By Dhanjay Deo
Monday 16/08/2021
Prime Minister and Minister for Sugar, Voreqe Bainimarama and National Federation Party MP, Pio Tikoduadua

The Prime Minister and Minister for Sugar, Voreqe Bainimarama stresses the Ministry of Sugar is not the responsible authority to regulate prices of any item including sugar and neither can it influence the body that is mandated to do so.

The Prime Minister highlighted this after National Federation Party MP, Pio Tikoduadua asked Bainimarama to inform whether the Ministry of Sugar was consulted by the Fiji Sugar Corporation on its submission to the Fijian Competition and Consumer Commission seeking a 100% rise of processed sugar.

Bainimarama says it is useless for the NFP to bring this question to parliament and they should educate themselves on the processes of the FCCC, an authority which will decide the price of sugar.

He says the FCCC has started the key process which is consultation with all relevant stakeholders and the Ministry of Sugar was also invited to make suggestions.

Bainimarama says it is sad to note that no submissions have been made by the NFP and this not not something new.

Tikoduadua then asked Bainimarama that if he understands people are having a hard time with the prices of everything, why is he exacerbating their pain by allowing or endorsing this price hike.

NFP Leader, Professor Biman Prasad also questioned Bainimarama whether he is aware that the FSC also intends to have only one mill in the Western Division.

In response, Bainimarama says significant target investment is needed in the mills and therefore it may be appropriate to rel-look at FSC’s cash flows and investment requirements in mills and also not forgetting the fact that sugar intakes is the major contributor to non-communicable diseases which is the bigger killer in Fiji.

He adds the last review of sugar prices in domestic market was done in 2017. He says the factory maintenance cost particularly labour cost and price of parts and equipment have significanty increased.

The FSC has proposed the price of 1kg of sugar be increased to $2.89 from $1.40, the price of 2kg sugar be increased to $5.78 from $2.81, the price of 4kg sugar be increased to $11.56 from $5.61 and and the price of 25kg sugar be increased to $72.73 from $34.17.

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