Sugar Loss: $120 million not $66m

[posted 9 Sept 2009,1700]

Fiji’s total sugar export to the EU this season is not likely to be more than 180,000 tonnes at best, according to reliable sources within the industry.

“There is no hope of reaching the export target of 240,000 tonnes as announced by FSC’s chief executive Deo Saran and the Permanent Secretary for Sugar, Pramesh Chand.

“So far only two shipments totalling 49,000 tonnes have left our shores when these should have been 30,000 tonnes each – that is a total of 60,000 tonnes. So, we are already short of 11,000 tonnes on the first two shipments,” says a well connected source.

Industry analysts put the blame for poor export figures on the pathetic performance of the sugar mills which, they say, have so far averaged a TCTS of 13:1. This is 70% more cane to a tonne of sugar.

The TCTS average should be around 8.5 tonnes of cane to a tonne of sugar. This inefficiency of the mills is costing the industry tens of millions in export income of which the growers are bearing 70%.

“There is no longer any accountability or transparency left on the part of FSC and with the dissolution of the Sugar Cane Growers council by the regime, cane growers will be left entirely at the mercy of the miller.

This will make matters worse as farmers will likely lose interest and cane production will slide further,” said a Labasa cane farmer.

Cane production in the Olosara and Cuvu sectors in Sigatoka will almost entirely cease as of next season because of the removal of rail transportation by FSC. Replanting this season throughout the cane belt has been very poor as farmers have received virtually no crop rehabilitation assistance.

Meanwhile, FSC chairman Gautam Ramswarup’s explanation of the recent high level visit of company officials to several countries abroad has been laughed off as “unmitigated nonsense” by a former FSC executive.

According to Mr Gautam the visit was to explain to the buyers “some changes that were currently happening in the industry”.

“What changes is he talking about? Why could these not be emailed or dealt with through video conferencing” asked the former executive.

“The truth is that these imported executives are off abroad at the drop of a hat to enjoy first class travel and luxury living at the expense of the company which is unable to get itself out of the financial quagmire in which it has been bogged down for the last several years,” he said.