Fiji may import sugar from India

India, the world's second-largest producer of sugar, may export 25,000 tonnes of the sweetener to Fiji as the island nation seeks to import the commodity to bridge the shortfall in its domestic production.

"We are looking at a total import of about 25,000 tonnes," Fiji Sugar Marketing Company CEO Viliame Savou told PTI in an email interview.

He attributed the lower domestic production of sugar this year in Fiji because of drought in the sugarcane belt resulting in a significant drop in the crop. "We are not able to fulfil our overall (export) commitments," he pointed out.

The sugar being imported would be consumed in the local market, Savou said, adding it would import direct consumption raw sugar in 50 kg bags.

However, Indian traders said Fiji would import sugar to re-export to European countries, where it enjoys a preferential tariff. Replying to a question on the possibility of Fiji exporting the imported sugar to EU, Savou said: "No, this is not true." Savou said the company was working through its brokers in Singapore, who are arranging the purchase from India.

"Fiji does not wish to specifically import sugar from India. We are importing sugar from the world market but as India happens to have surplus sugar this year and can meet our quality and timing requirement, Fiji will be importing sugar from India," he said. The island nation might have bought sugar from other origins provided they meet its requirements, Savou added. "We are purchasing direct consumption raw sugar which is similar to the quality of sugar consumed locally in Fiji," he said.

Fiji is likely to produce about 2,50,000 tonnes of sugar during 2007-08 season compared with 3,10,140 tonnes in the previous year. The harvest season in Fiji is normally from June to December, while in India it starts in October. Savou said Fiji has exported 2,01,400 tonnes sugar in 2006-07. The first consignment of imported sugar will arrive in January next year.

Replying to a query whether Fiji would import sugar from India on a regular basis, he said it would import only when there is a shortfall in local production.

The last time Fiji imported sugar from Thailand, Guatemala and Australia was in 1998-99, when there was a drought. He declined to comment on whether Indian companies can invest in Fiji to set up new facilities.