The emphasis in this year’s budget is to produce as much food as possible locally and to export any surplus. A Rs 1bn Food Security Fund will be set up to achieve this objective.
The priority is to produce 80% of the local potato requirement and to source the remaining 20% through partnerships with Madagascar and other countries in the region. Similarly, the same objective has been set for tomatoes by 2015 and other locally available vegetables immediately.
An aquaculture master plan has been prepared to increase local fish production to 40,000 tonnes p.a. Moreover, an increase in the production of milk to cater for 10% of the local consumption has been set as a medium term objective.
Regarding the acquisition by small planters and employees of up to 35% of the share capital of all new ventures under the sugar reform plan, the budget provides for Rs125m as grants and soft loans.
Out of the 2,000 arpents of land the Government obtained under the same sugar reform plan, 1,000 arpents will be leased to small and medium planters regrouped in companies/associations.
In order to lower the cost of locally produced food, this year’s budget identifies the following measures:
- Facilities and training will be set up for seeds production, derocking, irrigation, interline/rotational plantation, mechanisation, warehousing etc. Emphasis has been placed on the need to regroup small and medium planters into managerial units;
- Custom duties on single and double cabin vehicles used for agricultural activities (including small sugar cane planters) will be removed;
- Import duties on farm vehicles and equipment will be removed;
- A credit line of Rs100M will be set up to finance the acquisition of farm vehicles and equipment;
- VAT on fertilisers used in hydroponics will be removed;
- Land transfer tax and registration duties on land sold to métayers will be waived. Registration charges on new métayers lease contracts will also be waived.
- The DBM will write off any late interest payments and penalties on loans contracted before April 2003 by small planters and other food producers, under certain conditions.
In order to reduce the cost of food consumption, custom duties on several imported foodstuff such as dairy products, chicken, ham, canned vegetables, fruit juices, jams, biscuits, will be removed.
