Fiji sugar farmers will receive an interimpayment on the 1986 crop, four months ahead of schedule, in a
move aimed at getting harvesting of the drought-hit 1987 crop
under way, Governor-general Ratu Sir Penaia Ganilau said.
    Industry sources said latest forecasts for the 1987 crop
indicated output of 360,000 tonnes, well down on the record
501,800 tonne tel quel production in the 1986 (May-December)
crop year.
    The previous record was set in 1982 when Fiji produced
486,790 tonnes.
    For the past month Fiji sugar farmers have delayed
harvesting the 1987 crop pending a response from the
Governor-general to demands following the May 14 coup.
    Ganilau said in a statement the Fiji Sugar Corp would make
a payment of five dlrs per tonne against the final payment for
the 1986 crop on the understanding that preparations by growers
for commencement of harvesting would be completed at all mills
by June 23.
    Crushing would commence at Labasa and Penang mills on June
23 and at Lautoka and Rarawai mills on June 30, he said.
    The interim payment, to be made on or about June 30, is the
full amount of the grower's share of 1986 sugar proceeds
received to-date. The balance will be paid in October.
    Growers had also called for the full 1987 forecast price of
23.50 dlrs per tonne of cane to be paid in cash on delivery to
the mill, but this has been rejected by the state controlled
Fiji Sugar Corp, Ganilau said.
    However, in addition to the scheduled delivery payment of
14.10 dlrs, an additional sum of 2.35 dlrs, or 10 pct of the
forecast price, would be paid on December 15, on all cane
harvested by November 30, he said.
    Ganilau said, "This will be at least one month in advance of
the expected date of payment of the second payment of cane. The
balance of the second payment will be made six weeks after the
end of crushing."
    Another demand of Fiji's 22,000 small farmers was that an
estimated 14 mln dlr loan from the Fiji Development Bank (FDB)
for the 1983 cane crop rehabilitation programme be written off.
The FDB rejected this request.
    Ganilau said, however, "The bank is prepared to carefully
consider requests for rescheduling loan repayments in cases of
hardship on a case-by-case basis."
    In response to a further demand that all soldiers be
removed from the cane growing areas, Ganilau said the army
would restrict its presence in the cane areas.
    He said he had directed the authorities to issue permits to
harvesting gangs, cane growers and sugar industry trade unions
to hold the necessary meetings in preparation for the
commencement of harvest.
    Senior representatives of the sugar cane growers had
indicated a desire to commence the crush as soon as possible,
he added.
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