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World sugar price surge cushions impact here

  The present price of sugar on the world market is expected to provide Fiji some cushion to the shortfall in sugar exports caused by Cyclone Winston devastation. Things are
16 Jun 2016 12:17
World sugar price surge cushions impact here
Fiji Sugar Industry

 

The present price of sugar on the world market is expected to provide Fiji some cushion to the shortfall in sugar exports caused by Cyclone Winston devastation.

Things are also looking better for the sugar industry next year, with 2017 signalling a better year.

Fiji Sugar Corporation executive chairman, Abdul Khan, said the present global price of US 19.34 cents per pound of raw sugar was better compared to eight months ago.

The new price was also about US 12 cents per pound more than the price of sugar that was sold in the world market last year.

The devastation caused by TC Winston was expected to see Fiji lose about $40 million in export earnings.

However, with the improved price of sugar on the world market, Fiji is expected to lose out through a shortfall in sugar production.

“We cannot fully capture the markets as we will not have as much sugar as we should have for export,” Mr Khan said.

He said the increase would certainly cushion to some extent the shortfall in exports.

The mills were expected to process around 1.5 million tonnes of sugar cane this season, producing around 170,000 tonnes of sugar.

“The crop expected has depleted as compared to previous years,” he said.

Mr Khan said Fiji was expected to rake in between $150 million to $160 million from sugar exports this year.

Last year sugar exports, which totalled around 220,000 tonnes, brought in around $200 million.

Mr Khan said 2017  looked like a better year for the sugar industry.

Feedback:  rachnal@fijisun.com.fj

 

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