High dependence on imports to meet local demand

Over the past five years, sugar production in Madagascar has shown relatively constant stability, hovering around 90,000 tons per year. However, the 2020-2021 season was a low point with production limited to 80,940.85 tons.

This situation highlights the constraints of the local sugar sector in the face of economic and climatic variations. According to the Malagasy Sugar Cane Center (CMCS), the country’s requirements are approximately 220,000 tons annually. To compensate for the deficit in national production, sugar imports are increasingly necessary.

In 2022-2023, a reduction in these imports was observed, reaching 74,222.39 tons, representing a 62.38% decrease compared to the previous season. However, this trend reversed in 2023-2024, with a rebound in imports to 140,120.53 tons. This instability underscores the country’s dependence on the global market to meet domestic needs.

In Madagascar, sugar remains an essential product, with the majority of its use destined for domestic consumption. According to the CMCS, the average Malagasy consumes 7.73 kg of sugar annually. During the 2021-2022 year, domestic demand in France saw a significant increase, reaching an unprecedented level with a national consumption of 283,004.48 tons.

Once flourishing, Madagascar’s sugar exports have declined since the 2019-2020 season, when they reached a peak of 20,501.81 tons. Several factors explain this decline, including increased transportation costs, decreased international market prices, reduced trade privileges, and growing domestic demand that limits exportable quantities.

The sugar industry in Madagascar reflects a dual situation: constant but insufficient domestic production and a high dependence on imports to meet local market demand. As consumption continues to rise, the structural challenges associated with production and export have necessitated reforms to strengthen the sector.