Sugar growers look to Europe for salvation

MAPOU, Mauritius – Mauritian sugar farmers are pinning their hopes on European Union aid to save their centuries-old industry from ruin when the bloc starts slashing prices, growers said yesterday.

Cane producers say planned reductions of about 40 per cent in rates the EU pays for sugar as part of wider subsidy reforms will spell disaster for planters who depend primarily on sales to member state Britain’s Tate & Lyle. “I personally don’t see how we can survive that kind of price cut,” Denis Pilot, general manager of Belle Vue Mauricia SE, which runs the biggest cane processing factory on the Indian Ocean island off southeast Africa.”The sugar cane will be destroyed, it will be bush all over the place,” he told Reuters at his plant, where a 150-year-old smokestack towers above vistas of rippling stalks.European Union delegates were due to meet government and industry officials in the capital Port Louis later on yesterday to discuss ways to soften the impact of the cuts, expected to be officially unveiled on June 22 and phased in over two years.The EU’s executive Commission has said it will compensate the 18-strong group of African, Caribbean and Pacific (ACP) countries; for which Mauritius is the leading political voice; for losses they incur due to the reforms.Relying on sugar for foreign currency at a time when its textile sector is also under threat from changes to global trade rules, Mauritius says it has taken steps to cut costs on an isle where wages are higher than in rivals like Brazil.- Nampa-Reuters”I personally don’t see how we can survive that kind of price cut,” Denis Pilot, general manager of Belle Vue Mauricia SE, which runs the biggest cane processing factory on the Indian Ocean island off southeast Africa.”The sugar cane will be destroyed, it will be bush all over the place,” he told Reuters at his plant, where a 150-year-old smokestack towers above vistas of rippling stalks.European Union delegates were due to meet government and industry officials in the capital Port Louis later on yesterday to discuss ways to soften the impact of the cuts, expected to be officially unveiled on June 22 and phased in over two years.The EU’s executive Commission has said it will compensate the 18-strong group of African, Caribbean and Pacific (ACP) countries; for which Mauritius is the leading political voice; for losses they incur due to the reforms.Relying on sugar for foreign currency at a time when its textile sector is also under threat from changes to global trade rules, Mauritius says it has taken steps to cut costs on an isle where wages are higher than in rivals like Brazil.- Nampa-Reuters

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.

The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.