Academic blames poor info for sugar woes

AN environmental economist who conducted a comprehensive research of the sugar industry says many of the industry's reform recommendations were based on poor information.

Doctor Padma Narsey Lal of the Suva based International Union for Conservation of Nature, in her profile of the sugar industry also said most of the decisions affecting the thousands relying on the industry were made largely in the political arena.

Dr Lal, who started the study in 2000, also said there was evidence of consultants losing their objectivity and became captive to the interests of particular groups.

She said there were some cases in which consultants were driven by ideology rather than facts.

She said detailed primary data about costs and returns of sugar cane farms and the relative importance of on-farm and off-farm income was almost non-existent.

"Most references to farmer income and income status are based on perceptions and assumptions," she said.

"The farm cost estimates used are often based on typical farm cost data produced by the Fiji Sugar Corporation using typical farm activity.

"By FSC's own admission, its cost estimates do not reflect the true costs of cane production harvest because FSC does not include estimates of the opportunity cost of family labour, costs of farm implements and finance costs."

In 2003 and 2004 as part of the Australian Centre for Agricultural Research-funded sugar project, a detailed farm economic survey was conducted.

Questions sent to FSC chief executive officer Deo Saran were unanswered.
source:fijitimes