The Fijian Competition and Consumer Commission has completed its review and approved an increase in the price for ex-warehouse sugar by $0.90 (VEP) per kilogram, effective from today.
The prices have been approved following a thorough review of the submission made by the Fiji Sugar Corporation on 12 June last year.
The new ex-warehouse price for 1kg sugar now is $2.30, 2kg now costs $4.60, and the new ex-warehouse price of 4kg sugar is $9.20, while the new ex-warehouse price for 25kg sugar is $57.50.
FCCC Chief Executive, Joel Abraham has stressed that this price change is effective for FSC and all retailers are required to make submissions to FCCC to obtain their approved retail prices.
Abraham highlights the new prices are a result of extensive public consultations and exhaustive reviews of FSC’s financials.
He adds they also considered significant shifts in the world sugar market and the spill-over effects of a heavily-subsidized price of sugar on the health and wellbeing of Fijians.
Abraham says it is estimated from FSC’s consumer demand projections that finance raised directly through this price change will benefit Fijian cane growers by up-to $17m annually, which has the potential to further boost the sugar industry.
He says the beneficiaries of this price change are cane farmers who are
currently selling high quality sugar cane at an artificially low price in the domestic market.
Moving forward, FCCC under its performance based regulatory approach will, on a monthly basis, monitor FSC’s financial and operational performance.