FCCC Completes Price Review for FSC’s ‘Sugars of Fiji’
Following a thorough review of the submission made by the Fiji Sugar Corporation (FSC) on 12 June 2021, the Fijian Competition and Consumer Commission (FCCC) has completed its review and approved an increase in the price for ex-warehouse sugar by FJD $0.90 (VEP) per kilogram, effective from 20 January 2022.
The new prices are a result of extensive public consultations and exhaustive reviews of FSC’s financials. “FCCC also considered significant shifts in the world sugar market and the spill over effects of a heavily-subsidized price of sugar on the health and wellbeing of Fijians,” said the FCCC CEO, Mr Joel Abraham.
It is estimated from FSC’s consumer demand projections that finance raised directly through this price change will benefit Fijian cane growers by up-to FJD $17m annually, which has the potential to further boost the sugar industry. “We are hopeful that with the right commercial incentives, sugarcane farming will become a more attractive and financially viable venture”.
“Sugar is a commodity of historic importance for Fiji so I want to explain our rationale for this price change carefully. The beneficiaries of this price change are cane farmers who are currently selling high quality sugar cane at an artificially low price in the domestic market. To put it simply: heavily-subsidised sugar prices are bad for the industry, bad for growers, and bad for Fijian’s health. With volatility becoming the only constant in international sugar prices, our cane industry can no longer afford to sideline market solutions to address its challenges,” said Mr Abraham.
Moving forward, FCCC under its performance based regulatory approach will, on a monthly basis, monitor FSC’s financial and operational performance.
The following are the new ex-warehouse prices for sugar:
| Item Description | Quantity (Kg) | New ex- Warehouse Price (VEP) |
|
Sugars of Fiji |
1kg | $2.30 |
| 2kg | $4.60 | |
| 4kg | $9.20 | |
| 25kg | $57.50 |
“I would like to caution those unscrupulous traders seeking to exploit Fijians by hoarding, refusing to sell, and profiteering from this price change. Let me be clear, that this price change is effective for FSC and all retailers are required to make submissions to FCCC to obtain their approved retail prices. FCCC will ensure that no trader hoodwinks our people,” added Mr Abraham
