CANBERRA, May 18 (Reuters) - European nations have cancelled lucrative sugar subsidies for Fiji after the Pacific island's military government refused to hold post-coup elections this year and extended a crackdown on media and critics.

The European Commission said it had cancelled subsidies worth 24 million euros ($32.37 million) in the absence of any commitment to elections in 2009, as promised by military chief and interim Prime Minister Frank Bainimarama.

"I encourage the government of Fiji to fulfil its commitments to the EU so that we are able to reinstate sugar reform payments in the future," European Commissioner for Development and Humanitarian Aid Louis Michel said in a statement on Monday.

Fiji was plunged into fresh crisis last month after the president reappointed Bainimarama as interim prime minister, less than two days after a court ruled his 2006 coup and subsequent government was illegal.

The Pacific Islands Forum this month suspended Fiji from the 16-nation grouping with immediate effect after Bainimarama extended emergency laws and said there would be no election until 2014 at the earliest.

Fiji's economy is largely reliant on sugar and tourism, and both have been battered by the hard line adopted by the government, with foreign tourists increasingly staying away. Sugar is an important source of grassroots income and foreign exchange, with around 31 percent of the country's population reliant on the industry for their livelihoods.

High prices paid by the EC to counter the fall in the price of sugar sold to the EU amid industry reform has helped keep Fiji's industry competitive.

($1=.7415 Euro)

(Reporting by Rob Taylor; Editing by Sugita Katyal)

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