Sugar decline effects of Coup

The serious decline witnessed in Fiji's sugar industry has been directly attributed to the effects of the 2006 coup and delays in implementing of the restructure program by the interim Government.

Soqosoqo Duavata ni Lewenivanua Party leader and ousted Prime Minster, Laisenia Qarase said the interim regimes attitude towards the European Unions aid package to the sugar industry is also a contributing factor to the declining returns from the sugar market.

Late last month, the Fiji Sugar Corporation Limited recorded an operating loss of $19.3million, compared to an operating profit of $6.6m in the previous year. The results were for the year ended May 31, 2008.

Mr Qarase said this decline has been compounded by ineffective oversight of the industry by former interim Sugar Minister, Mr Mahendra Chaudhry.

"The current re-structure of the industry was initiated by the SLD Government.

"The 2006 coup has delayed the implementation of the re-structure program by at least two years, he said.

"The upgrading of the mills was planned to be completed by 2008. This work is not likely to be completed until 2009 or 2010.

According to Mr Qarase, the program was to be funded under the $350 million grant from the European Union and the interim regime has failed to meet its obligation to the European Union prior to release of funds.

"The farm improvement program should be well underway now, but it has not started."

He also claimed that Mr Chaudhry had tried to paint a good picture of the industry while he was in office as interim Sugar Minister.

source:fijitimes