Cane Growers Need EU Aid: Gawander

Cane growers would not be able to sustain themselves if the European Union Aid does not come through, says Sugar Cane Growers Council Chief Executive. Jai Gawander said with the reduced price for sugar, growers would fall apart. He said growers were already facing problems last year with 16,000 from 20,000 growers producing cane. They will fall apart, he said.

His comments comes after the African Caribbean Pacific Sugar Group adopted a united negotiating position with the European Commission on the Eroupen Union’s new regime at the end of four day conference in Nadi. The EU has contributed about $4 billion during the past 30 years to help sugar production remain competitive. Mr. Gawander said the $350 million promised to help take the sugar industry into the new millennium was a vital component of industry reforms. If the funding goes through, Mr. Gawander said the Council would want the EU funding to be front loaded rather than back loaded. We want the funding in the first six to seven years to be front loaded rather than getting it later, he said.

On the ACP meeting, Mr. Gawander said from the Council’s perspective the meeting ended well with most ACP nations appeared to face the same problem. He said the Fiji delegation presented itself well, with the ACP sugar supplying states to consider 36 percent reduction over three years announced by the EU. He said the member states wanted a revision of the time frame and the quantum of reduction to be spread over a longer transition period.

Mr. Gawander said chances might be slim. The Council had earlier said the $207 million revenue raked in by sugar exports this year could be increased by next year given the funds from the EU was released. Sugar exports last year raked in more than $207m despite cuts in preferential prices.