Fiji sugar industry warns of collapse
Updated
![Falling sugar prices and the European reaction to the December 2006 coup have left the sugar cane industry struggling. [AFP]](http://www.abc.net.au/ra/img/news/base/fiji_sugar_afp_270805.jpg?<BR> "Falling sugar prices and the European reaction to the December 2006 coup have left the sugar cane industry struggling. [AFP]")
Falling sugar prices and the European reaction to the December 2006 coup have left the sugar cane industry struggling. [AFP]
The Fiji Cane Growers Association says the country's sugar industry will collapse if democratic elections aren't held in March 2009.
Fiji's multi-million-dollar sugar industry, the country's second biggest employer, is suffering major difficulties adapting to international moves towards free trade.
The loss of its special preferences in the European market has placed increased pressure on the industry.
Until recently that deal meant the country received up to three times the world price for its sugar.
The president of the Cane Growers Association, Attar Singh, has told Radio Australia's Pacific Beat program if the election is delayed European-backed restructuring programs will not go ahead and sugar will become unprofitable.
"There was a negotiated grant that was to be given by the European community to Fiji's farmers to the tune of $US230-million dollars to help them diversify their crops and to be able to somewhat compensate for the loss arising out of reduced or declining sugar prices," he said.
"Now what has happened as a result of the coup in December 2006 the European community has said that the money will not be coming our way until Fiji returns to democratic rule."
