Price of Bagasse: From Rs 125/ tonne to Rs 1,225

The price of bagasse has gone from Rs 125 per tonne to Rs 1,225, today, December 15.

sugar industry employees

The news was announced yesterday afternoon by the Minister of Agro-Industry himself, Mahen Seeruttun, during a press conference. The drastic increase in the price of bagasse, a by-product of sugar production, was recommended by the High Level Implementation Committee that was set up to study the report of Landell Mills Consulting Ltd.

Additional measures were also announced, such as the creation of a Sugarcane Sustainability Fund. Each planter producing 60 tonnes of sugar will obtain Rs 1,100 per tonne. Those going beyond 60 tonnes of sugar will receive Rs 300 for each supplementary tonne. As for the Bagasse Transfer Price Fund that caters for Rs 125 per tonne of sugar, it will remain unchanged.

Furthermore, for every litre of alcohol produced from the molasses, the planters will receive Rs 20.

The planters will also obtain Rs 2,000 of compensation and those producing 60 tonnes will have Rs 3,400.

The CEB will be called to contribute 1.08 % of its revenues to the Sustainability Fund. Currently, it is contributing Rs 137 million.

Another measure involves the introduction of a 15 % tax on imported sugar.

Also, the Mauritius Sugar Industry Research Institute will no more be part of the Mauritius Cane Industry Authority (MCIA). The MCIA Act will, therefore, be amended. On the other hand, the role of the Mauritius Sugar Syndicate will be reviewed.

1 comment

  • Dear Madame, Kindly get your facts right. The price of bagasse hadn’t been reviewed in 30 years and planters were legitimately expecting to receive more than the paltry additional Rs. 1,100 per sugar ton or Rs 80 per ton of bagasse. You may furthermore wish to note that their counterparts from Reunion Island receive Rs. 1,500 for a ton of bagasse while local sugar mills sell the fiber to anthurium growers for not less than Rs. 2,000 a ton. Planters producing a green and clean energy source have again been fleeced.

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