Food security is one of the main issues addressed in the 2008-09 Budget. The focus is on a five-pronged strategy for food self-sufficiency which consists of mobilizing land, human resources, technology and financial resources to produce as much food as is practical domestically. A Food Security Fund is to be set up, with a provision of Rs 1 billion.
Mauritius will partner with countries in the region, starting with Madagascar, Mozambique, Tanzania and other countries where opportunities arise to produce food-crops, livestock and marine products for domestic consumption as well as for the regional markets. Moreover, a Regional Food Security Company will be set up as part of a COMESA initiative.
The top priority on food security is to increase self sufficiency in potatoes from the current level of 50 percent to full self sufficiency. To this end, a multi-faceted plan will be adopted to produce 80 percent of our needs at home and the balance of 20 percent in the region. Rs 10 million will be provided to MSIRI and AREU for developing new higher yielding varieties of potatoes, onions and tomatoes.
With support from the Project Implementation Committee (PIC) of the Mauritius Sugar Authority, sugar cane growers will make maximum use of interline and rotational plantation for the production of potatoes. In addition, more land will be earmarked and prepared for the production of potatoes. The PIC is carrying out derocking, regrouping and irrigation projects for small and medium sugar cane planters. This will prepare large expanses of land for complete mechanization and small planters will also be able to move into potato production and other crops. However, it is important to stress that incentives including derocking and irrigation will be conditional on small and medium planters regrouping themselves into managerial units. The regrouping mechanism adopted in the case of sugar cane will serve as a model.
The planting community will be encouraged to set up a commercial National Auction Market. This will enable the food production companies and other planters to maximize returns from their output, reduce wastage and improve the environment for trading. The PIC will set up a loan guarantee scheme to be operated by commercial banks to provide a revolving line of credit of Rs 100 million for the purchase of farm vehicles and equipment. All remaining import duties on these equipments and their spare parts have been removed.
Already, there was no VAT on fertilizers. Government has gone a step further by removing VAT on certain soluble chemicals, which are used as nutrients in specialized cultures like hydroponics. This sector is making its way and can contribute substantially to food security with greater involvement of small growers. To this end, AREU, the Empowerment Programme, SEHDA and the Regional Training Centre will pool their resources to provide training facilities as well as mentoring to SMES. It is expected that the hotel industry and the major distributors will also participate.
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