Africa-Press – Mauritius. The Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, announced, this evening, a series of measures to support and enhance the local Agro-Industry sector.
A sum of Rs 2 billion is being provided to support existing and new developments in the sector including fruits and vegetables, the tea sector, sugar sector, and livestock. Budget 2023-2024 provides the following key measures:
A grant of 50 percent, up to a maximum of Rs 500,000 for the construction of up to two sheltered farms; 50 percent subsidy for purchase of fertilisers; and 75 percent subsidy on potato seeds to SMEs and cooperatives; an increase in the grant for purchase of equipment by small planters from Rs 150,000 to Rs 250,000; and a grant of Rs 300,000 to cooperatives for acquisition of equipment to boost local production.
The budget is also providing for new measures. They include: 75 percent subsidy on seeds for cabbage, calabash, pumpkin, cucumber and carrot; 50 percent grant up to a maximum of Rs 300,000 for SMEs and cooperatives engaged in potato processing; and grant of Rs 200,000 for the setting up of a seedling production unit by cooperative societies.
To further encourage plantation by households, provision is being made for an increase in the grant for micro gardens from Rs 15,000 to Rs 25,000. As for the tea sector, the winter allowance to tea growers is being increased by 25 percent to Rs 2.50 per kg.
Other measures at the level of the DBM Ltd include introduction of a new agricultural loan scheme by the at 3.5 percent interest rate with a maximum ceiling of Rs 10 million; extension of the Crop Replantation Scheme at an annual preferential rate of 2.5 percent for biomass and afforestation; write-off long outstanding loans of more than 20 years and loans of deceased planters by the DBM Ltd.
With regard to measures to support the re-emergence of the cane industry, budget 2023–2024 is providing Rs 75 million under the Cane Replantation Scheme which has enabled the replantation of 1,000 arpents of land over the last two years; increase in the the Cane Revolving Fund Scheme of the DBM Ltd from Rs 200 million to Rs 500 million; provision of Rs 22 million for the maintenance of irrigation networks in Pointe-aux-Piments, St-Felix and Plaisance.
As for planters producing up to 60 tons of sugar, Government will provide a 50 percent subsidy on purchase of fertilisers and continue to pay the premium to the Sugar Insurance Fund Board; a financial assistance of Rs 150,000 for purchase of drip irrigation systems; and waive CESS in respect of crop 2023.
For crop 2023, it is increasing the minimum guaranteed price of sugar from Rs 25,000 to Rs 27,500. The industry is also called to play a major role in achieving 60 percent share of energy from renewable sources.
To this regard, the budget is providing funds for the operationalisation of the Biomass Framework; renumerate Cane trash and woody biomass will at Rs 3.50/kWh similar to bagasse.
Key measures to continue encouraging the growth of livestock production locally include: an increase in the grant for the purchase of cows by 50 percent to Rs 225,000 and same to be extended to goats, pigs and sheep; a subsidy of Rs 1,000 on the cost of private veterinary services; a financial assistance of Rs 200,000 for construction and upgrading of sheds and purchase of goats and sheep; an increase in grant paid to calf breeders by 33 percent to Rs 10,000; write-off of long outstanding loans of more than 20 years and loans of deceased breeders; and an increase in the subsidy on animal feed by 50 percent to Rs 15 per kilogram.
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