| Mauritius Battles to Keep Sugar Industry From Turning Sour |
|
|
 Sugar has long been the sweetener in Mauritius' global trade. But now the island faces an unpalatable fight to keep the industry going in light of a recent European Union (EU) proposal to cut sugar prices to African, Caribbean and Pacific (ACP) countries. The European Commission (the executive arm of the EU) plans to slash the prices by 39 percent over the next four years. Beginning 2006, this will lead to a drop from about 630 dollars per tonne of sugar to just over 390 dollars.
"The current proposals spell disaster for our countries. They will put in jeopardy the livelihood of hundreds of thousands of small poor farmers and workers who do not have any other alternative source of revenue, nor can they profitably grow alternative crops." he emphasised. The move follows a World Trade Organisation (WTO) ruling that the above-market prices paid to European sugar producers -- and those in former colonies such as Mauritius which have special access to EU markets -- constituted unfair trade. However, Mauritians aren't taking these developments lying down. "'Yes to reforms, but not (those which are) brutal and devastating," said Agro-Industry Minister Arvin Boolell, who is also a spokesman for the ACP group of sugar producing nations. ACP countries sell about 1.5 million tonnes of sugar annually to the EU under the so-called Sugar Protocol that dates back to 1975. At present, Mauritius exports about 500,000 tonnes of sugar to Europe; this accounts for 17 percent of the island's export revenue. There are now calls for ACP states to lobby the leaders of European countries directly on the matter of sugar prices, ahead of the upcoming WTO summit scheduled for Hong Kong in December. The ninth ACP ministerial sugar conference, held late last month in Kenya and attended by all 76 member states who are signatories to the Sugar Protocol, resolved to continue efforts to fight the EU decision. "The protocol is a time-tested tool that has helped countries like Mauritius in (their) social and economic development," said Boolell, adding that the effects of sugar reform could run contrary to efforts by the Group of Eight (G8) industrialised nations to reduce poverty and under-development. Earlier this year, the G8 met in Gleneagles, Scotland, for a summit which focussed largely on Africa, resulting in debt relief and a 50 billion dollar increase of aid to the continent. The EU shows little inclination to change its position -- but has pledged almost 48 million dollars to compensate ACP countries for the losses they are likely to incur. Some nations are pressing for this amount to be doubled in 2006, the first year of price cuts. Promises of aid mean little to farmers like Jugdutt Rampersad, however. As with many landowners in Mauritius, he has received a stable income from sugar production for the past thirty years. Now, perceiving the industry to be on the brink of collapse, he is no longer willing to invest in his sugar cane fields. "There is no way out. The sugar industry will die a slow death because production costs -- manpower, transport, fertilisers, herbicides and others -- will keep on increasing year by year while revenue will decrease," he said. About 20,000 small farmers may be forced to abandon their land, or sell it for industrial or housing purposes. Guirdharry Jugessur, chairman of the Mauritius Cooperative Agricultural Federation, also sounds despondent. "We'll have to face it (industry change), but how? I do not know. Perhaps by reducing production costs and improving productivity," he says. In 2001, Mauritius launched the Sugar Industry Strategic Plan to cut down on production costs in the sector. It has also reduced the number of sugar factories from 17 in 1997 to 11 in 2002 -- a number that is expected to drop still further to seven or eight by 2008. The remaining factories are being modernised to allow them to crush more cane. Some 10,000 employees have been laid off under a voluntary retirement scheme during the past four years, allowing the industry to reduce money spent on salaries by 25 percent. There have been proposals for vegetables to be cultivated between the rows of sugar cane, to make land more productive. In addition, farming of sugar is becoming more mechanised -- while irrigation facilities are being introduced in certain regions, particularly in the north of the island, to improve sugar yields. Electricity is also being produced from bagasse, a residue of sugar cane, and charcoal; this power accounted for 40 percent of Mauritius' electricity consumption last year. A company called Alcodis is producing ethanol from the cane, while another firm -- Chandni Oil -- is planning to start a similar operation in November. Chandni Oil plans to produce 30,000 tonnes of ethanol annually to export to African countries. It also wants to mix ethanol with fuel to run cars on the island. It has taken about 200 years to transform Mauritius, a volcanic island, into a sugar producer. In the process, nationals have benefited from the guaranteed prices paid under the Sugar Protocol, which are at least three times higher than those on world markets. The profits from the sugar industry have been used to develop other sectors, such as textile production and tourism. In addition, revenue from sugar has helped people to be trained abroad as lawyers, doctors, engineers and other professionals.
|
Comments 
Subscribe to this comment's feed
Write comment
The Issues
 |
Share The World's Resources |
Phone |
A politically unaffiliated |