Cane cutters at Amar Singh’s canefield at Vunivau, Labasa, yesterday. Photo: SITERI TALEITAKI
By RACHNA LAL
The Reserve Bank of Fiji has noted that our sugar industry has overcome its teething problems and has shown improvement in milling efficiency.
This was highlighted in the central bank’s Economic Review for August released this weel.
“In the first two months of cane crushing, around 700,000 tonnes of cane have been crushed by the mills to produce around 74,000 tonnes of sugar,” the report stated.
The review stated that industry liaison also indicated improved production in mahogany, woodchips and garments.
Moreover, electricity production, an indicator of overall economic activity, rose by 6.7 per cent in the first seven months of the year.
Generally, the review noted that sectoral performances remained mixed and certain sectors continued to perform below potential and face supply constraints.
Gold and fishing concerns
The sectors noting weak performances include gold and fishing.
“Gold production continues to perform poorly and declined by 26.6 per cent in the year to June,” it said.
“However, there are plans for additional capital expenditure at the Vatukoula Mine which should boost output over the medium term.
“Industry liaison reveals that the fishing industry is facing unfavourable weather conditions resulting in declining fish stocks within Fiji’s exclusive economic zone and the Pacific region in the first four months of the year.
“But this is expected to improve in the second half of the year.
“Competition from fishing fleets in international waters outside Fiji’s exclusive zone is also impacting detrimentally on the supply to local processors.”
Domestic economy
Meanwhile, the review said despite the weak global economic environment, the domestic economy is showing resilience and is projected to expand by 3.2 percent this year.
This would be fuelled by robust consumption and investment activity.
It said the outlook for investment is also favourable and is supported by the increased business and investor confidence noted in the RBF’s June Business Expectations Survey.
The merchandise trade deficit (excluding aircraft) widened by 38.2 per cent to $959.9 million in the year to May, compared to the same period in 2012.
Total export earnings (excluding aircraft) fell by 13 per cent led by re-exports, sugar, gold and mineral water.
This more than-offset the increases in garments, fruits and vegetables and other domestic exports.
Import payments (excluding aircraft) rose by 10.4 per cent while retained imports (excluding aircraft), an indicator of domestic demand, surged by 23.3 per cent in the same period.