Sugar: Increase In Levy Takes Effect from Monday

This increase was to take effect on March 27 following an amendment of the Mauritius Cane Industry Authority Act , but was postponed to allow time for importers to adjust their prices, according to a source familiar with the matter.

The main reason given by the authorities to explain this increase is funding the pensions of former Dockers Bulk Sugar Terminal . It is indexed to the cost of living and is expected to increase this year.

Some sources also suggest that the decline in domestic consumption could be another reason behind the increase. 40 000 tonnes there a few years ago, the local sugar consumption is now estimated at 36,000 tonnes per year. The Sugar Syndicate provides about 60% of the local market while the remaining 40% from private importers.