Copra subsidy proves worthy

 COPRA subsidies have worked out very well for Milne Bay province with K1.6 million being paid out by the Milne Bay provincial government despite prices plunging to record lows, according to provincial agriculture advisor James Duks.

Duks, who is in charge of the project, told The National in Alotau that Milne Bay was the envy of other provinces as they paid out K1 per kg to their growers while other provinces paid as low as 30t per kg.

“The copra subsidy has actually worked out very well for Milne Bay,” he said.

“Prices have dropped very low to 50t, 40t, 30t per kg. The copra subsidy ensures that we pay our farmers at K1 per kg.

“The furthest place copra comes in is from Rossel Island, the easternmost island of Milne Bay, where they produce more copra than the nearby islands.

“It is the last island and they produce the most copra. That region produced 75 tonnes last year.

“Goodenough Island is also considered one of the larger producers of copra.”

When the copra is brought in to the provincial capital, Alotau, it is bought by Samarai-Murua Exports Ltd from the growers at K1 per kg.

 After they pay, they submit their report to us, and I do a requisition for reimbursement,” Duks explained.

“My officers and I check and when we are satisfied that they have done that, we reimburse them.

“We started last June, and up to now as I speak, we have spent K1.6 million

“We produced 400 tonnes of copra last year.

“That is the largest in the Southern region, but that is happening because the copra subsidy is there.

“We have had New Guinea Islands and New Guinea Mainland complaining that they have not been getting their subsidies.

“My advice is that this subsidy needs to continue in this part of the world, because it pushes the production, and they get their levy.

“We need to continue more here than there, and better still, they should consider subsiding the whole crop in this country, because it is the government’s responsibility to ensure that they put money into people’s pockets.

“We have a shortfall of K300, 000, which the company has paid, but we are yet to reimburse.”