CMFL bid for subsidy - Copra Rabi

[Stacey King]

Fiji Times Online Monday, August 30, 2010

COPRA Millers of Fiji Limited expects to make presentations to the Government for an increase in sea freight subsidy for the transportation of copra to the mill.

The company subsidises the cost of transporting copra to their mill in Savusavu, especially from islands in Lau or from where their agents are located buying copra.

Seventy per cent of copra received at the mill is through coco traders and agents while 30 per cent are transported directly to the mill by producers.

Executive chairman Ilisoni Taoba explained that CMFL pays a freight subsidy of $47.94 for copra from Koro Island but can only claim $2.10 from the government.

For copra from Lomolomo it pays $55 but can only claim $6.27 or from Rabi $47.94 and can only claim $2.38.

"So for Koro's case, we pay the freight and a mill gate price for the copra of $652.84. In actual fact we pay $698.68," he said.

"There is no subsidy at all for the land freight that we also pay for.

"The subsidy was formulated by the Government 15 years ago and we intend to make submissions for an increase."