US crisis bears no real effect on sugar: FSC

The Fiji Sugar Corporation Limited (FSC) says the US financial crisis will have no real effect on Fiji’s sugar markets abroad, at least in the medium term.

FSC chief executive officer Deo Saran said its overseas markets, particularly in the European Union (EU) market, was well secured.

RBF deputy governor Sada Reddy yesterday said that the financial crisis in the US was still unfolding and that it was difficult to forecast the extent of the impact of these developments on small developing countries like Fiji.

However, he said it would impact the demand for Fiji’s export and services by overseas countries.

Reddy also noted that the turmoil had spread rapidly to other economies including Australia, New Zealand, Europe, Asia and South America.

Asked whether players in Fiji’s sugar industry should be worried of trickle-down effects, Saran said: “From the sugar point of view, at least for the medium term, it would have no real effect on our markets given that our markets in the EU is secured for seven years, six years at least.

“And the markets for our diversification products are all local and energy-based,” he said.

Saran said this would mean the demand would always be there.

“And it will be even stronger as the economy becomes more environmentally conscious to embark … I mean to invest in renewable energy,” he said.

Meanwhile, Reddy said the US crisis was not expected to impact on Fiji’s financial system.

“Fiji’s banks are to a large extent insulated from the global financial markets and therefore, we do not expect any major issues for our banks and insurance companies.

“The parents of Fiji’s banks are well capitalised and stable based on information from the regulators of the parents of our branch bank operations,” he said.

source:Fijilive