The Hindu Business Line : Fiji seeks Indian support to revive sugar industry

LOOKING FOR A SWEET DEAL: Mr Laisenia Qarase, Prime Minister of Fiji, examining samples of sugar at Bannari Amman Sugar unit at Alanganchi village near Nanjangud in Karnataka, along with Mr S.V. Balasubramaniam (left), Chairman, Bannari Amman Sugars.

Nanjangud (Karnataka) , Oct 14

DESPITE its dominance in the sugar export arena, the Fijian sugar industry has started to initiate corrective measures to root out inefficiency in productivity and technology adoption. The Fijian Government is banking on India for initiating such measures.

The three-year reform process, which has just begun, is based on the recommendations made by the Sugar Technology Mission from India. "It is expected to be complete by 2007," the Fijian Prime Minister, Mr Laisenia Qarase, told newspersons on Friday.

An 11-member Fijian team comprising Ministers and officials visited the Bannari Amman Sugars unit at Alanganchi village near Nanjangud in Karnataka to take a look at the factory. The Sugar Technology Mission has cited this plant as a model plant for adoption.

Stating that the Nanjangud unit was the first sugar plant he visited in India, Mr Qarase acknowledged the Indian sugar industry's efficiency levels both at the farm and at the mill and said there was a lot to learn from here.

"Our domestic consumption is comparatively small. With the impending expiry of preferential prices from the European Union and rising inefficiency in sugar production, milling, and transportation, the Fijian sugar sector is on the verge of collapse. Though the economic impact is not obvious at the moment because of the export subsidy to the European Union, this is not expected to last long. We foresee an urgent need for gearing up our production capabilities to face the challenges."

Sugar production cost varies between mills from F$70 a tonne to F$140.

"Even our lowest cost is very high compared to the Indian sugar production cost. Once the reform process is put in place, the industry can expect a rise in on-farm productivity from the current level of 50 tonnes a hectare to 80 tonnes."

On cost, he said the industry would aim at reducing it to the lowest possible level.

The Government would implement the suggestions put forth by the Sugar Technology Mission on diversification into co-generation and production of ethanol, he added.

The Chairman of Bannari Amman Sugars, Mr S.V. Balasubramaniam, has extended fullest co-operation in the revival of the Fijian sugar industry. "If required, we may even send our expert team to assess the problems and issues."

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