Sugar price boom predicted

Press, 7 April 1987, Page 30

Sugar price boom predicted

NZPA-AAP Suva The world price for sugar will increase from 5U5187 (SNZ332) a tonne this year to SUS4S2 (SNZBO4) by 1995, according to the Prime Minister of Fiji, Ratu Sir Kamisese Mara.

But the benefit to Fiji from the predicted boom in its major export would be lost if the opposition coalition won this week’s election and unionised the entire sugar work force, he said.

Fiji’s Trades Union Congress in 1985 formed the

Labour Party partner in the coalition with the National Federation Party and a number of union officials are among Labour’s candidates. The coalition has made no specific mention of unionising more workers in its election manifesto or campaign promises. A spokesman said earlier that it planned no changes in the sugar industry. In forecasting the sugar price surge, Ratu Sir Kamisese quoted World Bank commodities expert Ronald Duncan in a sugar

journal. He said the price was tipped to rise to SUSIB7 in calendar year 1987, SUS2S3 in 1988, SUS2S3 in 1989, SUS4IS in 1990 and SUS4S2 in 1995. But in some countries, most of them socialist, production costs had risen to such an extent in recent years that they could no longer produce sugar, he said. Unionising cane-cutters and other presently nonorganised workers would ruin the country, the Prime Minister added. A spokesman for. the

Fiji Sugar Marketing Board said that the world sugar price had slipped from SUS2O3 (SNZ36I) a tonne in early March to SUSI 73 (SNZ3O7) at the end of the month. The apparent reason was that the Soviet Union and India were hQlding back on expected major purchases. The spokesman said it was believed the price would rise again when they re-entered the market, and the price could reach that predicted by Ratu Sir Kamisese for this year.