Fiji Rice Mill

To Operate on New Basis.

From Our Own Correspondent.

SUVA, February 16.

FOR the past ten years or so, the Fiji Government has operated a rice mill at Suva, and has each year pur chased for milling all the paddy avail able in the Colony.

This has been done with the object of encouraging the growing of rice in the Colony to supply the Colony’s needs, and originated from the very bad gruel ling the Colony received through hav ing to purchase much rice outside the Colony, at times of high prices. It is estimated that some 11,000 tons of rice are consumed in Fiji yearly.

The Government now proposes to withdraw from the rice business and the use of the mill has been on offer at a low figure. Local business men, however, have been unwilling to take over the mill, which is by no means efficient. The Government will have to resume operations, but, this year, in stead of buying the rice outright, it will make a small payment at the time the paddy is delivered, and later will divide the profit.

By next year, the Indian’s idea of the value of his paddy will thus be down closer to world parity, and there will not be the same reluctance to sell at low prices.

Any business man attempting to take over the mill this year would find this reluctance to sell one of his biggest obstacles. In any case, it is economic ally sounder for the Indian, in the cane districts, to buy paddy and let his family turn it into rice, rather than to buy the rice itself. The landed cost of rice from Rangoon is about £13/14/a ton, after payment of duty and freight, whereas the grower in Rangoon is only getting about £8 per ton f.o.b. There is thus a natural protection of nearly £6 a ton in favour of the grower in Fiji, and this is more than sufficient to en able the Indian to make rice-growing in Fiji a paying proposition.