Fiji Sugar Cane

Negotiations Still Drag On MOF Raises Sugar Price For 1951

DURING 1950 the Colonial Sugar Re fining Company in Fiji discussed terms of a new contract for the purchase of cane with representatives of Indian cane growers. (See page 6, this issue.) The contract is for 10 years from June 1, 1950.

In June, 1950, the Company made an offer which was accepted by the five cane growers’ unions of the Colony in respect of 1950 cane only. At later meetings, the Company and the Unions failed to agree on the long-term contract and it was decided that the CSR should negotiate with the growers direct.

In late December the whole situation was still unsettled. The CSR announced early in the month that about half the growers had signed the contract.

It appears now that the situation as a whole can only be cleared up at the political level. But while Indian leaders bickered among themselves and the position remained unresolved news was received from the Ministry of Food in London that all Empire sugar producers will be paid £2/7/6 sterling more for their sugar in 1951 than in 1950. This means that Fiji cane farmers will receive about 10/- more a ton for cane this year than they did last—probably an average of about 47/- per ton, Fiji currency.

The new price was negotiated by a deputation of cane-growing British Empire countries led by the Premier of Queensland, Mr. Hanlon.

Long-term agreements were negotiated at an Empire Sugar Growers’ conference in London about a year ago. Under the agreements then reached the UK under took to buy all Fiji’s sugar until 1952; and, for each of the five years after that up to 125,000 tons at a price to be fixed each year. Fiji may also sell an additional 45,000 tons in the UK and Canada at world market price. Fiji has, to date, however, never reached this top export able limit of 170,000 —the best year was 1948, when a little under 150,000 tons were exported. Last year, because of adverse weather conditions, exports were expected to be about 100,000 tons.

The Empire Sugar Agreements should have stabilised the industry and improved conditions for the Fiji Indian can© growers. But, unless they are prepared to take advantage of it, and build up their industry until it is, in 1953, capable of filling the Colony’s quota, they may find that other sugar-producing countries are filling it for them.

Sugar was one of the world’s over produced commodities before World War 11. It could easily become so again.