Fg may impose levies on imported starch to drive cassava processing

It seems like you're referring to a potential policy decision by the government of a country, likely Fiji (FG), to impose levies on imported starch to promote the development of cassava processing in the country.

Here's a breakdown of the potential implications:

Why impose levies on imported starch?

The government may impose levies on imported starch to:

  1. Protect local industries: By making imported starch more expensive, the government aims to create a level playing field for local cassava processing industries, which may be struggling to compete with cheaper imports.
  2. Promote local production: The levies could encourage local farmers to increase cassava production, reducing the country's reliance on imported starch and creating jobs and economic opportunities.
  3. Support economic diversification: Cassava processing can be a valuable addition to Fiji's economy, providing a new source of revenue and diversifying the country's export base.

Potential benefits

  1. Increased local production: With the levies in place, local cassava farmers may increase their production to meet the demand for starch, creating a more sustainable and self-sufficient industry.
  2. Job creation: The cassava processing industry could create new job opportunities in farming, processing, and manufacturing, contributing to economic growth and development.
  3. Improved food security: By promoting local cassava production, the government can ensure a stable supply of a staple food crop, improving food security for Fijian citizens.

Potential challenges

  1. Increased costs for consumers: The levies on imported starch could lead to higher prices for consumers, potentially affecting the competitiveness of local industries that rely on starch as an input.
  2. Impact on trade: The imposition of levies could lead to trade disputes with countries that export starch to Fiji, potentially affecting the country's trade relationships.
  3. Effectiveness of the policy: The success of the policy depends on various factors, including the effectiveness of the levies in promoting local production, the competitiveness of local industries, and the ability of the government to monitor and adjust the policy as needed.

Overall, the decision to impose levies on imported starch is a complex one that requires careful consideration of the potential benefits and challenges. The government of Fiji will need to weigh the pros and cons of this policy and consider alternative approaches to promote the development of cassava processing in the country.