$85 per tonne it is
22 May, 2019, 12:00 pm
THE 2019 season forecast price of sugar at $53.69 is a result of a reduction largely driven by lower global sugar pricing, says the miller.
However, the Fiji Sugar Corporation (FSC) has reiterated that canefarmers could look forward to the guaranteed price of $85 per tonne for the 2019 season.
The FSC made this comment this week after concerns and queries about the fourth cane payment and the forecast cane price of $53.69 for the 2019 season.
“The result for the 2019 season is a forecast cane price of $53.69 per tonne, compared with $66.08 forecast for the 2018 season, a reduction largely driven by lower global sugar pricing,” FSC said in a statement.
“The fourth cane payment for the 2018 season will be announced by FSC shortly.
“This payment will include the next tranche of the $85 per tonne guaranteed cane price for the 2018 season, and will greatly assist farmers in their preparations for the 2019 harvest.”
FSC stated that the world sugar price had experienced extreme volatility in the past 12 months and year on year has dropped by nearly 20 per cent because of large production surpluses that had risen in major sugar producing nations such as India, Thailand and Brazil.
“The price that Fiji receives for its bulk sugar exports is thus impacted by these global market conditions,” FSC said.
“Accordingly, current spot and future prices are used in the calculation of the forecast cane price for the season ahead, which as directed by the Master Award, includes a 15 per cent contingency for adverse fluctuations in market conditions.
“The significance and foresight of the Government’s setting of a guaranteed cane price of $85 per tonne of cane in the current situation cannot be ignored.”
FSC added this was the very purpose of this guaranteed cane price to create stability and certainty for canefarmers and shield them from the adverse market conditions prevailing in world commodity markets.
“Notwithstanding the current forecast cane price, set in terms of the Master Award, canefarmers can look forward to the certainty of a guaranteed cane price of $85 per tonne for 2019.”