Mauritius sugar revenue falls 6% as global prices and EU shipments decline

Producer price falls 12%

Mauritius’ sugar industry recorded sales revenue of Rs 10.4 billion, down 6% from Rs 11 billion previously, amid falling global prices, rising production costs and shrinking cane acreage. Le Mauricien reported the figures following the annual meeting of the Mauritius Sugar Syndicate, where outgoing president Jean-Michel Maigrot and CEO Devesh Dhukira warned that the industry must preserve production and improve competitiveness.

The ex-Syndicate price paid to producers for the 2025 harvest was set at Rs 24,095 per tonne of sugar, 12% below the Rs 27,478 paid for the previous crop. Maigrot said the price could have reached about Rs 25,000 if the Global Cess Waiver, in place since 2018, had been renewed. Revenue declined less sharply than the global market, which fell 15% over the same period.

Currency hedging generated a gain of about Rs 220 million, helped by the euro’s appreciation against the Mauritian rupee. Producers also received Rs 3,087 per tonne of sugar equivalent for bagasse and Rs 5,125 for molasses, including the levy on distillers and bottlers. Total 2025 crop receipts reached Rs 29,600 for planters and Rs 27,200 for millers, but remained below operating costs.

Lower output threatens economies of scale

The harvested area declined to 33,805 hectares in 2025 and sugar output stood at 220,305 tonnes. More than 10,000 hectares formerly planted with cane are reportedly unused. Labour shortages, water restrictions, land abandonment and persistent cost increases are adding pressure on the industry’s production base.

Productivity has also deteriorated. Over 12 years, yields fell from nearly 80 tonnes of cane and eight tonnes of sugar per hectare to 68.7 tonnes of cane and 6.5 tonnes of sugar. Climate change and weaker agricultural practices were identified as contributing factors. Maigrot said maintaining a minimum production level is essential to retain economies of scale and give the Syndicate sufficient flexibility in its markets.

The Syndicate is seeking stronger protection for the domestic market against some sugar imports, a review of the bagasse price and tighter control of statutory costs, including the Global Cess and the SIFB insurance premium. Bagasse has been priced at Rs 3.50 per kWh since 2021. Higher remuneration could support planter income and biomass production as Mauritius targets a 60% renewable-energy share by 2035.

Specialty sugar and new destinations cushion the decline

Global sugar production rose from 175.5 million tonnes in 2022/23 to 181 million tonnes the following year after strong prices encouraged capacity expansion, particularly in Brazil. The average world raw sugar price fell from nearly 24 US cents per pound in July 2023 to about 19 cents a year later and 16.70 cents in July 2025.

European beet production and higher imports, notably from Ukraine, increased inventories and pressured prices in a key Mauritian market. Mauritius shipped about 30,000 tonnes of white sugar to the European Union from the 2025 crop, compared with 60,000 tonnes in 2023/24. The Syndicate consequently expanded sales to destinations including Kenya, Madagascar and China.

Specialty sugar now represents 60% of production, up from 54% in the previous year and 52% in 2020. Alteo Milling and Terra Milling produced 132,000 tonnes in 2025 and exported 122,000 tonnes. Competition is nevertheless increasing as suppliers from Africa and Central America enter European brown cane sugar segments. The projected global surplus for 2025/26 was reduced from 2.24 million tonnes in May to 1.14 million tonnes in August, while the expected 2026/27 surplus became a small deficit, supporting the Syndicate’s view that prices may recover.