The Sugar Industry in Fiji
The sugar industry has perceived as the backbone of the Fiji economy. It was started as a colonial strategy to promote economic growth. The sugar industry has become one of the leading industries in the country’s economy over the years. Sugar production was the one of the key export; therefore, sugarcane farming drove the development agenda in Fiji. It contributes 7 percent of gross domestic product and generates 22 percent of total exports. This industry has become vital and dominant position in Fiji economy.
Sugarcane is currently grown in the two main islands of Fiji, Viti Levu and Vanua Levu, in proximity to the four mills, three in Viti Levu and one in Vanua Levu. Sugar has become one of the most successful export commodities and local consumption shows preference to local sugar. It ...view middle of the document...
Consequence of loss of source of income and employment in which would be immensely devastating especially in the rural areas where the poor would suffer. During the milling season, broke down of machine in the sugar mills usually happened and it an unsatisfactory performance of capital. Export decreased due to this minor obstacle, lead to the downfall of foreign earning, resulted fall in the government expenditure and real consumption. Transportation was another issue which have increased the cost of sugar in the market due to the suspension of the rail system which was previously used in the some part of the industry. These problems have created foreign competition of sugar.
Reluctantly, the industry manages to solve these problems but unfortunately some issues have created negative result of performance. Non-renewal of land leases have promoted an idea to sugarcane farmers not to grow sugarcane and declined production of sugar. The level of sugar is currently very low and thus the sugar price has increased enormously. The gradual withdrawal of preferential price by the European Union which implicates Economic Partnership Agreement, development aid and sugar price cut for Fiji. The third issue is the poor infrastructural support which imitates the low standards of producing sugar. It is inexpensive to buy new infrastructure but very expensive to repair old infrastructure from time to time. These issues have affected the dominant position of the sugar industry in the economy and indicate enhancement collapse to the industry.
As a result, Fiji sugar industry has gone through many positive and negative changes. It started as the most leading industries and ended as the most failure industry in the economy. Despite this failure, the industry also accompanied with many negative issues which lead to the downfall of the industry as well as to the Fiji economy. Nevertheless, the Fiji industry is determined to rise again in the future.