The government made public a report at the end of July which gives first indications on the way in which the State envisages the “transformation” of the overseas sugar sector.. The report results from a mission entrusted to the general financial inspectorate, to the general council for the environment and sustainable development and to the general council for agriculture and rural areas.
While recommending the maintenance of public aid to the sector, the general inspectors recommend modifying the aid system of 38 million euros per year, implemented in 2017 when sugar quotas disappeared. They propose replacing it with flat-rate support for investments in the production of innovative sugars and decreasing support over time., calculated on the basis of actual losses suffered by sugar mills.
Report takes a new look at raw sugar production activity for refining in Europe, described as “structurally deficit”. He recommends better sharing of added value between sugar refineries and rum distilleries, the latter achieving much better results than the former. For Reunion, the authors suggest opening the capital of Tereos Indian Ocean to local players, for the sake of “financial transparency”. They also want a change in the method of calculating the purchase price of the cane., by linking it to the evolution of sugar prices.
General inspectors finally advocate for the reconversion of the least productive small farms, considering that it is vain to seek to maintain at all costs a tonnage of overall production generating losses. The government “has taken note of this report, whose recommendations will be the subject of exchanges with local stakeholders and the European Commission”. Waiting, the level of existing aid will be maintained in 2022.
