Monday, October 26, 2009

Minister calls for inquiry into Army intervention

The Minister for Defence and National Security, Ratu Epeli Ganilau, has written to the RFMF calling for an investigation into alleged harassment, intimidation and assault of the cane farming community by the Army.
The National Farmers Union wrote to Ratu Epeli a week ago raising concerns at the increasing number of reports of intimidation, harassment and physical torture and brutalities against cane farmers and cane cutters by army personnel.
The NFU cited specific cases including the incident in Lautoka where a cane cutting gang was hauled over to the army barracks, two of whom were allegedly brutally assaulted while the rest, including elderly men, were made to run around the camp.
In his letter addressed to the RFMF Chief of Staff, Colonel Pita Driti, the Minister asked that the cases be investigated and action taken as necessary.
“Considering the seriousness of the issues…your assistance to investigate, take necessary action as appropriate and inform this office, will be greatly appreciated,” Ratu Epeli said.

Friday, October 2, 2009

No STATE subsidy for Kavanagasau cane farmers

The $20 per tonne subsidy for cane farmers in the Kavanagasau area who transport their cane by lorry to the Lautoka Mill, will come from sugar industry funds and not the State as (mis)reported in The Fiji Times today.
The statement by Ministry of Agriculture permanent secretary Mason Smith that the State will provide the $20 subsidy to farmers in the area, is not true.
The NFU is reliably informed that the total cost of the subsidy will be deducted from the proceeds of sugar as an industry cost before it is allocated to FSC and the growers. Cane growers will bear 70% of this cost.
The interim government must stop hoodwinking the people, and cane farmers in particular.
Furthermore, the subsidy is inadequate, because the total cartage cost to a farmer forced to take his cane to Lautoka Mill by lorry will be $35 per tonne.
As for government’s decision not to repair the broken bridge, this is unfortunate because if EU funding under the sugar industry reform programme had been available, this could have been used to repair the bridge as there was provision under it for infrastructure development.
The EU has suspended assistance to Fiji pending a return to democratic and constitutional rule.

Regime disallows Growers Council meeting

The regime has refused permission for a full Sugar Cane Growers Council to convene a meeting to discuss the dissolution of the Council.
The Council had written to the Sugar Ministry and the Commissioner Western on 10 September requesting permission to call a full Council meeting to discuss its dissolution ordered by the interim government.
Permanent Secretary Pramesh Chand replied on 23 September denying permission for the 38-member Council to meet.
This is yet another clear sign of oppression of cane growers and a denial of their right to meet to discuss issues of crucial importance to them.
The regime continues to stifle the voice of cane growers while it implements decisions that are jeopardising their future in the sugar industry. I

Raid on Sugar Cane Growers Fund

The National Farmers Union is extremely worried at what appears to be a raid on the Sugar Cane Growers Fund by the insolvent fertiliser company, the South Pacific Fertiliser Ltd (SPFL).
The cash-strapped SPFL which cannot obtain loans from a commercial bank, is using the Fund for its working capital.
There is now a very real threat of the Fund being exhausted and going bankrupt.
SPFL has already taken out $25 million from the Growers Fund of which $14 million is now lost through a government directive that it be converted into equity for the Fund. Such equity in an insolvent company is worthless.
The company is making no repayment for the remaining $11m it owes the Fund and continues to dip into the fund for more easy money.
Under authoritarian rule there is nothing the growers can do to stop this raid on their money. The Growers Council is soon to be dissolved and government decisions cannot be challenged in a Court of Law.
Meanwhile, in a media statement FSC chief executive Deo Saran wrongly takes credit for bringing forward the last cane payment this year as a Diwali payment to enable cane farming families to have money for the festivities.
The truth is that this was an initiative of the Sugar Cane Growers Council which had written to FSC requesting that the last cane payment be brought forward as a Diwali pay out.
Furthermore, the $3 a tonne bonus payment that Deo Saran is raving on about now was approved by Cabinet in 2008 when Mahendra Chaudhry was the Minister for Sugar. FSC can hardly take credit for this initiative.

Labour Leader meets with EU Director General

Labour Leader Mahendra Chaudhry met with Mr Roger Moore, EU’s Director General for Development in Suva this week.
Their hour long discussions focused on Fiji’s current political situation in relation to the commitments made by the Interim Government to the EU in the consultation talks held in April 2007 in Brussels; in particular, the regressive developments here post 10 April 2009 which have led to violations of human rights.
Mr Chaudhry also drew Mr Moore’s attention to the unsatisfactory situation in the sugar industry, in particular, the regime’s decision to marginalise cane growers through dissolution of key industry institutions on which the growers had a voice.

Another disastrous week for cane crush

The four sugar mills were down once again last week crushing only 89,000 tonnes of cane against a target of 130,000 tonnes. This is 45,000 tonnes short of the weekly crushing capacity of the four mills.
The Lautoka and Rarawai mills are already seven weeks behind in their season to date crush figures. Labasa mill is now four weeks behind, while Penang is on target because of a substantially reduced crop size this season - crop estimates were revised down from 220,000 tonnes to 170,000 tonnes.
Figures for tonnes of sugar manufactured are still not available as FSC and the Sugar Ministry are refusing to release these. However, it has been established that sugar make is extremely low on account of badly malfunctioning mills. The national TCTS average is reportedly a high of 15:1 ie. 15 tonnes of cane to a tonne of sugar which is almost twice the normal TCTS ratio of 8.5:1.
As a consequence of the high TCTS ratio, farmers are running losses totalling tens of million of dollars. Upto the date of the last sugar shipment which left the port of Lautoka late last week, farmers had delivered 1.1 million tonnes of cane which shold have manufactured 128,000 tonnes of sugar but FSC only managed 80,000 tonnes on account of the hopelessly low extraction rate of its mills.
This means FSC cheated the industry of 48,000 tonnes of sugar worth $53 million of which $37 million would have gone to the cane growers.
This can be converted to a $17.000 per tonne loss sustained by the grower up to the date of the last shipment (23 Sept), on an estimated crop of 2.2 million tonnes this season.
This is a colossal loss by any standards! And will compound to a much higher figure by the end of the season. It can now be clearly understood why the regime is dismantling sugar industry institutions where the growers had a voice and which could hold FSC and the regime to accountability and transparency with regard to milling operations.
The recent arbitrary and autocratic actions of the Sugar Ministry and the total collapse of corporate ethics in the FSC have put the future sustainability of the sugar industry on the line.

Friday, September 25, 2009

The lies about land

Does anyone remember the Committee for the Better Utilisation of Land?
CBUL was Frank’s big initiatives in relation to land. He was going to get a better deal for both farmers and landowners. Landowners who renewed leases would get some extra money from the government for a few years and then sometime after the government would look at legislation to decide a fair rent level.
So what happened? Last August we were told that most leases would be renewed. Check it out the promise made last year on the regime’s website:
http://www.fiji.gov.fj/publish/page_12720.shtml
So has this happened? Nothing! All we hear is that the area devoted to sugar is continuing to shrink.But the lies keep coming. When he was out of the hearing of his fellow countrymen the illegal Foreign Minister, Inoke Kubuabola, told his Sri Lankan counterpart that the interim government was “seeking to bring about reforms on land use and the Constitution in order to bring about a system of equality to both the indigenous people and Fijian Indians”.
But this is all hot air. The regime has done nothing about land because they know they don’t have the democratic mandate to do it. With the constitution abrogated there are no legal obstacles. They could produce a new decree tomorrow if they wanted to.
Landowners might be happy to extend leases by ten years if they know they won’t need to use it for their own purposes over that time span. The problem has been ALTA means that a lease cannot be less than thirty years.
Democracy has not found it easy to deal with the land issue but dictatorship has done nothing but spin lies.
CORRUPTION FIGHTER
Posted by rawfijinews

Mill operations continue to deteriorate badly

The latest crush figures, for the week ending Monday 21 September, indicate the performance of all four sugar mills were down, getting from bad to worse.
The sugar mills crushed a total of 62,000 tonnes cane for the week – with capacity declining to a mere 48%. All four mills were plagued with breakdowns and malfunctioning.
Industry figures for the week are as follows:
Lautoka ………. 19,000 tonnes Rarawai………… 16,000 tonnesLabasa ………….22,000 tonnesPenang…………. 5000 tonnes
Data for sugar manufactured is still being withheld. With more than half the season gone, FSC has crushed just over 1 million tonnes of cane – about 50% of its now revised target of 2.1million. Original targeted figure was 2.45 million tonnes.

Monday, September 14, 2009

More bad news for sugar

The reported $37 million loss for the financial year 2008/2009 is the biggest ever incurred by the Fiji Sugar Corporation.
While attempts have been by the Corporation’s CEO to underplay the huge loss by attributing most of it to abnormal items, it is a well known fact that FSC is in serious financial trouble. It has, for instance, asked for an extension of a five year moratorium on its loan repayment to the Exim Bank of India.
The loss cycle of the Corporation is likely to continue into the future throwing doubts on its long term viability. Three of its four mills are plagued by chronic mechanical problems.
FSC has borrowed heavily and is having difficulty meeting its debt repayment obligations. It is only able to raise long term loans and short term finance on the back of government guarantees.
Latest figures show that crushing is way behind schedule and that only 34% of the estimated crop of 2.4 million tonnes had been crushed by 31st August.
The optimum crushing period is almost over, and from October with the onset of the hot season, the sugar content of cane will begin dropping.
FSC is providing absolutely no information on the sugar manufactured despite repeated requests from the growers’ organisations. This secrecy confirms suspicions that the sugar extraction rate is extremely poor with cane juice filtering into mill mud or converting to molasses. Or, is simply being dumped into the Labasa and Ba Rivers and into the ocean in Lautoka. No wonder the two sugar shipments in July and August were short by some 11,000 tonnes!
The media this week has reported that the Health authorities in Labasa have begun proceedings against FSC for polluting the Qawa River with cane juice. The residents of Ba have been complaining for weeks now to the Town Council and Health authorities to take similar action against FSC for polluting the Ba River but so far their calls have fallen on deaf ears.
One can now see why the Sugar ministry has directed the dissolution of the Sugar Cane Growers council. It is a case of blatant collusion with FSC to remove transparency and accountability from the industry and place it in complete control of the miller.
This move will completely deprive the cane growers of their right of representation and oversight of the industry in which they are supposed to have a 70% stake!

Sugar Loss: $120 million not $66m

Fiji’s total sugar export to the EU this season is not likely to be more than 180,000 tonnes at best, according to reliable sources within the industry.
“There is no hope of reaching the export target of 240,000 tonnes as announced by FSC’s chief executive Deo Saran and the Permanent Secretary for Sugar, Pramesh Chand.
“So far only two shipments totalling 49,000 tonnes have left our shores when these should have been 30,000 tonnes each – that is a total of 60,000 tonnes. So, we are already short of 11,000 tonnes on the first two shipments,” says a well connected source.
Industry analysts put the blame for poor export figures on the pathetic performance of the sugar mills which, they say, have so far averaged a TCTS of 13:1. This is 70% more cane to a tonne of sugar.
The TCTS average should be around 8.5 tonnes of cane to a tonne of sugar. This inefficiency of the mills is costing the industry tens of millions in export income of which the growers are bearing 70%.
“There is no longer any accountability or transparency left on the part of FSC and with the dissolution of the Sugar Cane Growers council by the regime, cane growers will be left entirely at the mercy of the miller.
This will make matters worse as farmers will likely lose interest and cane production will slide further,” said a Labasa cane farmer.
Cane production in the Olosara and Cuvu sectors in Sigatoka will almost entirely cease as of next season because of the removal of rail transportation by FSC. Replanting this season throughout the cane belt has been very poor as farmers have received virtually no crop rehabilitation assistance.
Meanwhile, FSC chairman Gautam Ramswarup’s explanation of the recent high level visit of company officials to several countries abroad has been laughed off as “unmitigated nonsense” by a former FSC executive.
According to Mr Gautam the visit was to explain to the buyers “some changes that were currently happening in the industry”.
“What changes is he talking about? Why could these not be emailed or dealt with through video conferencing” asked the former executive.
“The truth is that these imported executives are off abroad at the drop of a hat to enjoy first class travel and luxury living at the expense of the company which is unable to get itself out of the financial quagmire in which it has been bogged down for the last several years,” he said.