Fijians are being urged to keep a close watch on food prices and essential goods as developing El Niño conditions are expected to bring drier than normal weather and put pressure on local food production and imported supplies.
The Fijian Competition and Consumer Commission says the conditions could place upward pressure on the cost and availability of some food, freight and essential goods over the coming months.
The Fiji Meteorological Service has confirmed that Fiji is in the El Niño phase, with below-normal rainfall expected across most of the country, while current forecast models indicate a 97 percent probability that El Niño conditions will persist into early 2027.
The FCCC says drier conditions could reduce local agricultural output, with sugarcane identified as particularly vulnerable, while rice, cassava, dalo and other crops could also be affected.
It says the impact of drought on agriculture was evident during the 1997/98 drought, when the sugarcane harvest fell by 50 percent and some areas had their crops destroyed entirely.
The FCCC says Fiji's reliance on imported finished goods and raw materials also exposes consumers to overseas price movements.
It says lower local crop yields could increase demand for imported substitutes, placing additional pressure on supply and landed costs, particularly for products that are not price-controlled.
The Commission says forecasts of below-average rainfall in Australia could affect wheat and barley production and export availability, while warmer and drier conditions in other source markets could tighten supplies of imported potatoes, garlic, onions and other fresh produce later this year.
It says higher international prices, freight charges, shipping disruptions and inland logistics costs could also increase the landed cost of imported goods.
The FCCC says elevated fertiliser and farm-input costs linked to global supply disruptions could further flow through to food production and procurement costs.
It says any increase in international product prices, freight and logistics costs, together with elevated fertiliser costs linked to the ongoing global conflict in the Gulf region, could significantly affect domestic prices of imported food and groceries.
The FCCC says price increases during the dry season do not automatically amount to exploitation, as genuine increases in production, freight and other costs can affect market prices.
However, traders must be able to provide evidence supporting price increases.
The Commission says the Master Price List for basic food items, pharmaceuticals and petroleum products remains fully applicable during this period.
Traders are required to provide records showing their total into-store cost, freight and delivery charges and the calculations used to determine their markup.
The FCCC says these records will be requested during routine and unannounced audits, and failure to keep them is a compliance failure.
Consumers are also being encouraged to report suspected deliberate withholding of stock for assessment and, where appropriate, investigation under the FCCC Act 2010.
The FCCC says price controls are an important regulatory measure to protect consumers from the immediate effects of global and domestic pressures, including geopolitical tensions and climate-related events such as El Niño.
It says regulating prices of essential goods and services helps moderate sudden and significant cost increases, support affordability and access, and provide greater price stability during periods of economic uncertainty.
The Commission says water supplies could also come under pressure, with increased demand for water carting, tanks, bottled water and plumbing goods.
Electricity generation could be affected by reduced hydro output, which could result in greater reliance on imported diesel, while any fuel surcharge would require FCCC approval based on verified cost evidence.
The FCCC says outer islands are particularly vulnerable because of their heavy reliance on shipping for water, fuel and relief food.
Shipping services, freight rates and passenger fares remain controlled under the Maritime Shipping Order 2022, with gazetted rates not allowed to increase because of higher demand.
The Commission says its officers may inspect vessels and premises under section 126, while obstruction of authorised officers is an offence under section 128.
It says demand for transporting water tanks, fuel and relief cargo could increase across Lau, Lomaiviti, Kadavu, Vanua Levu, Viti Levu and Rotuma.
The FCCC says consumers who notice an unusual or unexplained price increase should ask why the price has gone up and report suspected overcharging while the stock is still available on the shelf.
Consumers are advised to check prices against the Master Price List displayed in stores, keep receipts, record the shop and time of purchase and photograph shelf tags where necessary.
They are also encouraged to reduce non-essential water use and follow conservation advisories from the Water Authority of Fiji and the Fiji National Disaster Risk Management Office.
Businesses have been reminded to maintain freight, supplier and into-store cost records, while maritime operators are required to charge gazetted fares and assist authorised officers.
Consumers can report suspected overcharging or other concerns to the FCCC on 892 1991 or by emailing helpdesk@fccc.gov.fj.
