Changing the economy

[the_future_modernes]

Q&A: Small Sugar Farmers Not so Sweet on End of Sugar Protocol :Nasseem Ackbarally interviews SALIL ROY, sugar farmer and leader of the Planters’ Reforms Association in Mauritius

PORT LOUIS, Oct 14 (IPS) - The Sugar Protocol enabling developing world sugar farmers to produce for the European market over the past 34 years ended on Sep 30. Among these, the small island state of Mauritius built two major industries -- tourism and textile and clothing – on the back of its sugar sales.

This agreement had secured for Mauritius a duty-free quota of 500,000 tons of sugar for export to Europe at a guaranteed price that was three times higher than the prevailing world price. Mauritius became the main sugar supplier to the European market among the African, Caribbean and Pacific (ACP) countries.

Mauritians would have loved things to continue like this for years. But the 36 percent cut in the price that the European Union (EU) paid for sugar over the past four years and the reduction of the quota by up to six million tons woke them up to the EU’s changing trade policy.

With the help of the EU, Mauritius took on the challenge of reforming its sugar sector. Sugar factories have thus been centralised to six units only; and small and medium scale farmers have been regrouped to benefit from economies of scale.

Moreover, electricity is being produced for the national grid with bagasse, a cane residue, along with ethanol and refined white sugar, thus optimising revenue from sugar cane. The industry has been transformed from a sugar to a cane industry.

Salil Roy told Nasseem Ackbarally how small and medium scale farmers are surviving the changes.
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