5 Jul 2013

Stark warning on threat to agriculture in PNG from high kina

1:47 pm on 5 July 2013

The governor of the Papua New Guinea central bank, the Bank of PNG, says the high inflows of revenue from the huge LNG project pose major threats to other sectors of the economy, such as agriculture.

Loi Bakani says from next year, with the receipts from the project starting to come in, there will be a likely appreciation of the kina.

Mr Bakani says if agriculture is not ready it could be killed off by this appreciation, particularly if international prices for food commodities remain low.

He says the government needs to take action and ensure the sector is more modern and efficient.

"Because you know this has the potential to come, I am pre-warning the government lets develop the agriculture sector. If it is not using a current way of developing agriculture, current technology, go into new technologies of developing the agriculture sector, in terms of productions, in terms of growing crops."

The governor of the Bank of PNG, Loi Bakani.

He says he would like to see a major commitment to agriculture in the next Budget.