● <B>What led to the closure of the three factories ? Mon-Loisir, Riche-en-Eau and Mon-Trésor ? </B>

In the light of the 36% drop in the price of export sugar prices, there was a need to centralise the activities of sugar factories. It would not be profitable for the three factories to continue working. But the government said it would agree to their closure only if the sugar companies gave between 1,500 and 2,000 acres of land for social projects.

● <B>Why does the Mauritius Sugar Planters Association not agree with this ? </B>

They believe it is an ?excessive? condition. They say they wrote to the ministry of Agribusiness to ask for clarifications but they have not been able to start any dialogue with the authorities yet. One of the conditions attached to the closure was that the government pays up to 75% of the social costs for centralisation; but it recently came back on that decision and the sugar producers now have to pay more than the 25% initially planned.

● <B> What will happen if the dialogue does not resume ? </B>

The agreement is valid until 31st May. Beyond that date, the centralisation proposed by the state becomes obsolete and the three factories will continue working while two of them (Mon-Trésor and Riche-en-Eau) say they can?t afford to do so. This would also constitute a major threat to the obtaining of the European Union financial aid, as one of the criteria is the closing down of these three factories to ensure the viability of the sector.