The Agro-industry minister, Arvin Boolell, met yesterday the Council of European Union (UN) ministers for Agriculture. This official meeting is of utmost importance as it is the first between the African Caribbean and Pacific (ACP) countries and the EU since the release of the sugar regime reform proposals by commissioner Mariann Fischer Boel.

As from financial year 2006-2007 and the EU timeframe, the price of sugar will be reduced by 5%, reaching a drastic cut of 39% in four years. The EU proposes to mitigate the hefty reduction through financial measures to sugar-producing ACP countries. Mauritius has the largest chunk in the volume of sugar. However, to be entitled to these financial aids, each country should come forward with a proper action plan on how it would reform its industry and adapt it to the changing markets.

The summit takes place at a moment where Arvin Boolell has just made public his “roadmap for the Mauritius sugar cane industry for the 21st century”. This plan, with the prime goal of curtailing production costs, sets the agenda for reforms to be undertaken over a 10-year span. ‘Sugar, our story’, is the motto of the ACP.

<B>Indepth reform</B>

Mauritius abides to it as both government and private sector strive for a quick and in-depth reform. The roadmap shows that Mauritius has a real will to save its sugar industry. Moreover, it’s a clear message to the EU that our sugar will not survive with aid from the EU.

But Mauritius can’t just rely on an eventual EU aid and it has to find its own ways to save its sugar industry from the claws of the world market. “Standing still will imperil our economic growth and social development. The Mauritian people has always shown great resilience, perseverance and innovative capacity. We will certainly overcome the challenges ahead as we have the political will to do so”, says the roadmap.

The reforms will cost about Rs 23.5 billion. It is based on the creation of clusters and a series of sectors, which need to be boosted on a new basis on a period of up to 10 years in some cases. In 2015, the industry should have a brand new profile with a drop in production costs and the emergence of new sub-sectors within the industry – energy production from bagasse and ethanol production from molasses.

<B>Positive vision</B>

Sugar factories have already started reducing production costs but small planters are said to be late. The state will thus help them by allocating Rs 4.3 billion to derocking their fields, setting up an irrigation system and mechanization. This should help them harvest some 40 tons of sugarcane per hectare.

The minister has also given the guarantee that planters will be exempted from paying some bonuses including that of the Sugar Insurance Fund Board. As wages represent a high proportion of expenses, Arvin Boolell announced that a new voluntary retirement scheme would be proposed soon.

The response of sugar producers has been quite positive as they have recognized that the “proposals of the roadmap lie in the framework of a positive vision of the survival of the sugar industry in Mauritius”. However, they would like to have more details on some measures. The Mauritius Sugar Producers’ Association shares the view of the government that all stakeholders should take part in the reform of the industry and it is ready to help the government in this tough task. As the minister states, it is only with “solidarity and patriotism” that the industry will survive.