Fiji sugar industry close to collapse

Fiji's sugar farmers say the absence of a multi-million dollar EU grant, extreme weather conditions and dilapidated infrastructure are contributing to an industry collapse.

Fiji's Farmers Union says the country's sugar industry is on the brink of collapse.

The Growers Association says the industry lost more than $US5 million in the six month period ending November 30 last year and is calling on the interim government to find alternative funding to keep the industry alive.

The secretary of Fiji's Farmers Union's Lambasa Branch, Surendra Lal, has told Radio Australia the absence of a multi-million dollar grant from the European Union, extreme weather conditions and dilapidated infrastructure are factors contributing to the downfall of the industry.

He says if action is not taken immediately the sugar industry will collapse.

"It will have a catastrophic effect on the economy. Over 200,000 people are dependent on the sugar industry alone in Fiji," he said.

"If the sugar industry collapses I wonder where we will find another alternative livelihood for our farmers, mill workers and cane cutters."