Sogavare to Review Copra Export Management Fee

Honiara, Solomon Islands – The Deputy Prime Minister and Acting Minister for Commerce, Industry, Labour and Immigration, Hon. Manasseh Sogavare, is reviewing the newly introduced management fee on copra exports with authorities.

Sogavare questioned the process behind the fee, citing concerns over its impact on farmers and government finances.

The Commodities Export Marketing Authority (CEMA) introduced a $3.05/kg management fee on copra exports, reducing farmers’ payout to $2.95/kg from a market price of $6.00/kg.

Sogavare wants clarity on the fee’s rationale, saying “the thinking behind the numbers needs to be explained”.

He stressed the need for proper government processes to be followed, noting Ministers don’t operate independently, and decisions should go through the cabinet.

“I can tell that some of these processes may not have been followed,” he said, prioritising the review of the fee.

“I had a first glance at the document. It does not look right, but the thinking behind it is what I will raise with the permanent secretary,” he said.

The concerns follow the introduction of a management fee by the Commodities Export Marketing Authority (CEMA), which has significantly reduced the amount paid to copra producers.

According to a public notice issued by CEMA, the market price for copra is $6.00 per kilogram. A management fee of $3.05 per kilogram is now being applied, leaving farmers with a net return of $2.95 per kilogram.

Sogavare said the rationale behind the fee structure must be clearly explained, noting that CEMA operates within the government framework and that CEMA is an extension initiative that is part of the government body.

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